Assumption no change in either fiscal or monetary policy no, Financial Management

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Assumption no change in either fiscal or monetary policy no

Assumption: no change in either fiscal or monetary policy, no change in exchange rate expectations, and that price are "sticky".

What are the consequences of a sudden loss of confidence on the part of businesses in a country (that adversely affects their outlook for future sales)? Detail the effects of this shock on ALL relevant variables.

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Financial Management: Assumption no change in either fiscal or monetary policy no

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Financial Management: Assumption no change in either fiscal or monetary policy no

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