Suppose country A undertakes a policy mix of contractionary fiscal policy and expansionary monetary policy. What doyou predict would happen to real interest rates, the value of country As currency, and net exports? Explain your answer.
Suppose country A undertakes a policy mix of contractionary fiscal policy and expansionary monetary policy. What doyou predict would happen to real interest rates, the value of country A’s currency, and net exports? Explain your answer.
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