Examine the effects of a decrease in foreign output and foreign interest rate underflexible exchange rate...

Examine the effects of a decrease in foreign output and foreign interest rate underflexible exchange rate regime when the goal of the central bank is to achieve output stability (Hint: Use Mundell-Fleming model) What happens to the components of demand?

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Rahul Sunny answered 1 month ago

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Examine the effects of a decrease in foreign output and foreign interest rate under flexible exchange...

Examine the effects of a decrease in foreign output and foreign interest rate under flexible exchange rate regime when the goal of the central bank is to achieve output stability (Hint: Use Mundell - Fleming model). What happens to the components of demand? draw the relevant graph

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