Macroeconomics
10th Edition
ISBN: 9781319105990
Author: Mankiw, N. Gregory.
Publisher: Worth Publishers,
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Question
Chapter 13, Problem 8PA
(a)
To determine
The shape of the LM* curve.
(b)
To determine
The effect of the expansionary fiscal policy under floating exchange rate.
(c)
To determine
The effect of the increased risk premium and interest rate on exchange rate, price level, aggregate income in this model and in normal.
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