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Within the Mundell-Fleming model assuming imperfect capital mobility, analyze the effects of the following policy actions for both the fixed and flexible exchange rate cases:
Within the Mundell-Fleming model assuming imperfect capital mobility, analyze the effects of the following policy actions for both the fixed and flexible exchange rate cases: A. A decline in the money supply B. A decrease in government spending Include in your answer the effects of the policy action on both income and the interest rate, as well as on the balance of payments and the exchange rate
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