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In: Economics

Question 1 Explain, in words and on a graph, how a fiscal stimulus works in a...

Question 1

Explain, in words and on a graph, how a fiscal stimulus works in a Mundell-Fleming model with a fixed exchange rate. Is this effective fiscal stimulus policy?

Question 2:

Explain, in words and on a graph, how a fiscal stimulus works in a Mundell-Fleming model with a floating exchange rate. Is this effective fiscal stimulus policy?

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Expert Solution

Rahul Sunny answered 4 hours ago
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