What is the appropriate fiscal and monetary policy mix

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Consider an open economy with flexible exchange rates. Suppose output is at the natural level, but there is a trade deficit. What is the appropriate fiscal and monetary policy mix?

Reference no: EM131133274

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What is the appropriate fiscal and monetary policy mix : Consider an open economy with flexible exchange rates. Suppose output is at the natural level, but there is a trade deficit. What is the appropriate fiscal and monetary policy mix?
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