Derive the nominal interest rate

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Reference no: EM132198049

Question: Present a short run analysis of equilibrium of an open economy, in the goods market, financial market and the exchange rate market (IP). You are also expected to show why the IS curve downward sloping, the LM is upward sloping and the IP curve is upward sloping. Derive the nominal interest rate that maintains equilibrium in the three markets.

Reference no: EM132198049

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