What will happen under flexible rates if the intersection of the IS and LM curves is below

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What will happen under flexible rates if the intersection of the IS and LM curves is below (or to the right) of the BP curve? Why?

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International Economics

ISBN: 9780078021671

8th Edition

Authors: Dennis Appleyard, Alfred Field

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Question Posted: Dec 02, 2015 04:31 AM

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What will happen under flexible rates if the intersection of the IS and LM curves is below

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If the intersection of the IS and LM curves is at a point below the BP curve there will be an i...View the full answer

International Economics

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