Question: 2. Suppose that Y < Y bar , CA < 0, and G > T. The goal of the policymakers is to achieve , reduce

2. Suppose that Y < Y bar , CA < 0, and G > T. The goal of the policymakers is to achieve , reduce the CA deficit, and eliminate the budget deficit. Using the large open economy model, illustrate and explain what combination of monetary and fiscal policies will achieve all three goals

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