Use the mundell-fleming model to show for a small country, Ask an Expert

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Use the Mundell-Fleming model to show for a small country with a flexible exchange rate that fiscal policy becomes less effective as international capital mobility increases. (Suggestion: use three graphs, one with q=0, one with BB steeper than the LM, and one with BB flatter than the LM. Show how policy affects the equilibrium level of output. Explain your results.)

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92199011

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