In the Mundell-Flemming model with floating exchange rates, explain what happens to aggregate income, the exchange rate and the trade balance when taxes are reduced. Contrast what would happen if exchange rates were fixed rather than floating?
In the Mundell-Flemming model with floating exchange rates, explain what happens to aggregate income, the exchange rate and the trade balance when taxes are reduced. Contrast what would happen if exchange rates were fixed rather than floating?
Chapter1: Making Economics Decisions
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In the Mundell-Flemming model with floating exchange rates, explain what
happens to aggregate income, the exchange rate and the trade balance when
taxes are reduced. Contrast what would happen if exchange rates were fixed
rather than floating?
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