Under what capital mobility conditions is fiscal policy, Macroeconomics

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Under what capital mobility conditions is fiscal policy

Problem

1. What will happen under flexible rates if the intersection of the IS and LM curves is below (or to the right) of the BP curve? Why?

2. What exogenous real and financial factors influence the position of the BP curve?

3. Under what capital mobility conditions is fiscal policy totally ineffective in influencing income? Explain why this result occurs.

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Macroeconomics: Under what capital mobility conditions is fiscal policy

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