Assuming perfect capital mobility and flexible exchange rates, explain the impact on the Irish economy of a decrease in interest rates in the U.S. In your answer, clearly indicate the effect on income, rate of interest, balance of payments use the IS-LM-BP diagram and explain the mechanisms. Consider Ireland a small open economy with flexible exchange rates
Assuming perfect capital mobility and flexible exchange rates, explain the impact on the Irish economy of a decrease in interest rates in the U.S. In your answer, clearly indicate the effect on income, rate of interest, balance of payments use the IS-LM-BP diagram and explain the mechanisms. Consider Ireland a small open economy with flexible exchange rates
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Assuming perfect capital mobility and flexible exchange rates, explain the impact on the Irish economy of a decrease in interest rates in the U.S. In your answer, clearly indicate the effect on income, rate of interest, balance of payments
use the IS-LM-BP diagram and
explain the mechanisms. Consider Ireland a small open economy with flexible
exchange rates
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