Since under a fixed exchange rate system the exchange rate


Since under a fixed exchange rate system the exchange rate does not change, does this mean that the BP curve never shifts? Why or why not? If it in fact does shift, what effects do such movements have on the equilibrium interest rate and equilibrium income if financial capital is imperfectly mobile? Briefly explain.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Since under a fixed exchange rate system the exchange rate
Reference No:- TGS01630848

Expected delivery within 24 Hours