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Efficacy of fiscal policy depend

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Reference no: EM132145517

What are the key channels by which fiscal policy affects output in a closed versus open economy? Using the models studied in class, discuss what is meant by "crowding out", and how the crowding out effect works in an open economy. How does this effect differ to the way it works in a closed economy? To what extent does the efficacy of fiscal policy depend on the type of exchange rate regime?

Reference no: EM132145517

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