Consider an open economy like australia with free capital
Consider an open economy like Australia with free capital mobility and a floating exchange rate. Using the Mundell-Fleming IS-LM model Explain how a fiscal policy expansion can stimulate the economy and how it impacts on the balance of payments.
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consider an open economy like australia with free capital mobility and a floating exchange rate using the
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explain how a restrictive monetary policy can induce a contraction in an open economy and how its affects the balance
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