Assume a small country with floating exchange rates explain, Finance Basics

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Assume a small country with floating exchange rates explain

Question: Assume a small country with floating exchange rates. Explain what happens with output, real exchange rate in the short and long run, if the government increases government expenditure permanently. Use the AA-DD model. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

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Finance Basics: Assume a small country with floating exchange rates explain

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