In the MundellFleming model with floating exchange rates, explain what happens to aggregate income, the exchange rate,

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In the Mundell–Fleming model with floating exchange rates, explain what happens to aggregate income, the exchange rate, and the trade balance when the money supply is reduced. What would happen if exchange rates were fixed rather than floating?

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Macroeconomics

ISBN: 978-1464168505

5th Canadian Edition

Authors: N. Gregory Mankiw, William M. Scarth

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Question Posted: Dec 31, 2015 01:37 AM

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In the MundellFleming model with floating exchange rates, explain what happens to aggregate income, the exchange rate,

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Macroeconomics

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