Use the Mundell-Fleming framework to show and explain how effective monetary policy and fiscal policy is,...

Use the Mundell-Fleming framework to show and explain how effective monetary policy and fiscal policy is, in raising output, in the following cases in the presence of imperfect capital mobility:

(i) fixed exchange rate

(ii) flexible exchange rate.

Be sure to clearly explain your graphs and the various shifts that occur.

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Rahul Sunny answered 1 month ago

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