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IS/LM/BP model, flexible exchange rate and an increase in government purchases

Utilizing the IS/LM/BP model, demonstrate the effect of each of the following changes. Assume that the economy has an upward sloping BP curve that is flatter than its LM curve and a flexible exchange rate. Illustrate an increase in government purchases.

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M921699

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