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(a) Consider an economy operating under a flexible exchange rate system. It isencountering a recession and also having a balance of payments deficit. At the sametime it is also encountering inflationary pressure. Analyse what would be the suitable policies for the economy to solve these problems

(b) Analyse how would your answers be different in (a) if the economy were to operateunder a fixed exchange rate system instead.

 

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91254330

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