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Fixed exchange rate system and perfect capital mobility

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Reference no: EM131661686

Explain why a cut in government spending has a larger effect under a fixed exchange rate system and perfect capital mobility than in a closed economy model?

Reference no: EM131661686

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Fixed exchange rate system and perfect capital mobility : Explain why a cut in government spending has a larger effect under a fixed exchange rate system and perfect capital mobility than in a closed economy model?
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