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Free capital mobility and a fixed exchange rate

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Reference no: EM131093679

Consider an open economy with free capital mobility and a fixed exchange rate, using the Mudell-Fleming IS-LM model, explain the short-run effects of an expansionary monetary policy on the domestic economy's level of output, the exchange rate, and the trade balance.

Reference no: EM131093679

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Free capital mobility and a fixed exchange rate : Consider an open economy with free capital mobility and a fixed exchange rate, using the Mudell-Fleming IS-LM model, explain the short-run effects of an expansionary monetary policy on the domestic economy's level of output
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