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    Principles of Macroeconomics Study Set 11
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    Exam 20: Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates
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    Explain What Effect a Fiscal Expansion Would Have in an Open
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Explain What Effect a Fiscal Expansion Would Have in an Open

Question 40

Question 40

Essay

Explain what effect a fiscal expansion would have in an open economy under flexible exchange rates.

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A fiscal expansion will cause an increas...

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