What will happen under flexible rates

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Reference no: EM132177320

Question: 1. What will happen under flexible rates if the intersection of the IS and LM curves is below (or to the right) of the BP curve? Why?

2. What exogenous real and financial factors influence the position of the BP curve?

3. Under what capital mobility conditions is fiscal policy totally ineffective in influencing income? Explain why this result occurs.

Reference no: EM132177320

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