Question: i dont get this last part While the overall impact on exchange rates is somewhat uncertain, the output would rise more substantially than it would

i dont get this last part "While the overall impact on exchange rates is somewhat uncertain, the output would rise more substantially than it would with only fiscal expansion, without the anticipation of future monetary policy. The influence of the expected monetary policy occurs before the actual implementation of the policy

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!