Describe the impact of an expansionary fiscal policy in an, Business Economics

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Describe the impact of an expansionary fiscal policy in an

Describe the impact of an expansionary fiscal policy in an open economy using the ISLM model and the interest-rate parity relationship. Explain what happens to output, the interest rate and the exchange rate, using the appropriate graphs to illustrate your answers. How are these results different from the results of expansionary fiscal policy in a closed economy, and why?

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