According to the Mundell-Fleming’s two country model, a monetary expansion in the foreign country has a...

According to the Mundell-Fleming’s two country model, a monetary expansion in the foreign country has a negative effect on home country’s output (while it has a positive effect on foreign country’s output) under the flexible exchange-rate regime. Explain, with the help of graphs, the channels of interdependence behind this result.

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Rahul Sunny answered 2 years ago

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