a) graphically derive the IS curve ina small open economy. write downshift factors ofiS curve. graphicallyexplain the effect of any one of themon IS curve.b)underfixed exchange rate system and thelarge open ecomomy expansionaryfiscal policy is effective whilemonetary policy is ineffective.Do youagree with this statement.graphicallyexplain your point of view by usingMundell-Fleming model

The IS curve is downwards sloping to the right which indicates to the fact that the rate of…

a) graphically derive the IS curve in a small open economy. write down shift factors ofIS curve. graphically explain the effect of any one of them on IS curve. fixed exchange rate system and the large open economy expansionary fiscal policy is effective while monetary policy is ineffective.Do you agree with this statement.graphically explain your point of view by using Mundell-Fleming model b)under

a) graphically derive the IS curve in a small open economy. write down shift factors ofIS curve. graphically explain the effect of any one of them on IS curve. fixed exchange rate system and the large open economy expansionary fiscal policy is effective while monetary policy is ineffective.Do you agree with this statement.graphically explain your point of view by using Mundell-Fleming model b)under

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Define and derive the monetary approach to exchange rates. Why is it called a long-run model? Don't copy. I ll rate