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    Macroeconomics Study Set 39
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    Exam 13: The Open Economy Revisited: the Mundell-Fleming Model and the Exchange-Rate Regime
  5. Question
    In the Mundell-Fleming Model, What Does the Following Equation Denote
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In the Mundell-Fleming Model, What Does the Following Equation Denote

Question 112

Question 112

Essay

In the Mundell-Fleming model, what does the following equation denote?
Y= C (Y- T) + I (r*) + G + NX (E)
M/P = L (r*,Y)

Correct Answer:

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The first equation i...

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