What is the exchange rate initially

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assume that the LM curve for a small open economy with a fixed exchange rate is given by Y=200r-200+2(M/P). This IS curve is given by Y=400+3G-2T+3NX-200r. The function for the net exports is NX=200-100e, where e, is the exchange rate, and the exchange rate is initially 1.0.

Reference no: EM1364528

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