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For many years the Argentinean peso was pegged to the U.S. dollar. Using the IS-LM-FX model for Home (Argentina) and Foreign (US dollar), illustrate how an increase in taxes in Argentina affected the following variables in Argentina (increase, decrease, no change, or ambiguous): Y, i, E, C, I, TB. Do not forget to use a diagram to support your answer.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M92195302

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