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    Exam 17: Macroeconomic Policy and Floating Exchange Rates
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    Describe How an Inconsistent Policy Affects the Equilibrium Level of Output
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Describe How an Inconsistent Policy Affects the Equilibrium Level of Output

Question 43

Question 43

Essay

Describe how an inconsistent policy affects the equilibrium level of output, the price level, interest rates, capital flows, and the exchange rate.

Correct Answer:

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Answered by ExamLex AI

An inconsistent policy can have signific...

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