Starting from point E in Figure 18.8, draw a figure showing how the nation could reach internal

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Starting from point E in Figure 18.8, draw a figure showing how the nation could reach internal and external balance with flexible exchange rates by using an expansionary fiscal rather than an easy monetary policy if capital mobility is large and the BP curve is to the right of point Z in Figure 18.8.
Figure 18.8
Starting from point E in Figure 18.8, draw a figure
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International Economics

ISBN: 978-1119915737

11th edition

Authors: Dominick Salvatore

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