jennamae6190 jennamae6190
  • 29-04-2024
  • Business
Answered

In the Mundell-Fleming short-run model of a small open economy with a fixed exchange rate, if the government increases government purchases, then in the new short-run equiLiBrium :
1) Output will increase
2) Interest rates will increase
3) Exchange rate will appreciate
4) Net exports will decrease



Answer :

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