Describe the mechanism that leads from a change in fiscal policy to changes in interest rates, exchange

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Describe the mechanism that leads from a change in fiscal policy to changes in interest rates, exchange rates, and the current account balance. Do the same for monetary policy.

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International Economics

ISBN: 978-0132948913

6th edition

Authors: James Gerber

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Question Posted: Nov 27, 2015 02:02 AM

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Describe the mechanism that leads from a change in fiscal policy to changes in interest rates, exchange

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Expansionary fiscal policy raises incomes and consumption These raises in turn lead to an increase in the demand for money The increase in the demand ...View the full answer

International Economics

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