2 Suppose a large open economy with fixed exchange rate A What happens to income, interest rate in response to a fiscal expansion B What happens to income and interest rate if the central bank expands money supply by buying bonds from the public 2 Suppose a large open economy with fixed exchange r...

A As we can see in following diagram when there is fiscal expansion the IS curve will shift ...

2. Suppose a large open economy with fixed exchange rate. A. What happens to income, interest...

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Foundations of Macroeconomics

ISBN: 978-0134492001

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Authors: Robin Bade, Michael Parkin

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2. Suppose a large open economy with fixed exchange rate. A. What happens to income, interest...

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A As we can see in following diagram when there is fiscal expansion the IS curve will shift ... View the full answer

Foundations of Macroeconomics

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