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Category > Economics Posted 23 Apr 2017 My Price 3.00

Describe the mechanism

Describe the mechanism that leads from a change in fiscal policy to changes in interest rates, the exchange rate, and the current account balance. Do the same for monetary policy.

 

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Status NEW Posted 23 Apr 2017 05:04 PM My Price 3.00

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file 1492967969-Answer.docx preview (248 words )
D-----------esc-----------rib-----------e t-----------he -----------mec-----------han-----------ism----------- th-----------at -----------lea-----------ds -----------fro-----------m a----------- ch-----------ang-----------e i-----------n f-----------isc-----------al -----------pol-----------icy----------- to----------- ch-----------ang-----------es -----------in -----------int-----------ere-----------st -----------rat-----------es,----------- th-----------e e-----------xch-----------ang-----------e r-----------ate-----------, a-----------nd -----------the----------- cu-----------rre-----------nt -----------acc-----------oun-----------t b-----------ala-----------nce-----------. D-----------o t-----------he -----------sam-----------e f-----------or -----------mon-----------eta-----------ry -----------pol-----------icy-----------. ----------- A-----------nsw-----------er ----------- Wh-----------en -----------the----------- go-----------ver-----------nme-----------nt -----------run-----------s a----------- de-----------fic-----------it,----------- it----------- me-----------ets----------- so-----------me -----------of -----------its----------- ex-----------pen-----------ses----------- by----------- is-----------sui-----------ng -----------bon-----------ds.----------- In----------- do-----------ing----------- so-----------, i-----------t c-----------omp-----------ete-----------s w-----------ith----------- pr-----------iva-----------te -----------bor-----------row-----------ers----------- fo-----------r m-----------one-----------y l-----------oan-----------ed -----------by -----------sav-----------ers-----------. H-----------old-----------ing----------- ot-----------her----------- th-----------ing-----------s c-----------ons-----------tan-----------t, -----------a f-----------isc-----------al -----------exp-----------ans-----------ion----------- wi-----------ll -----------rai-----------se -----------int-----------ere-----------st -----------rat-----------es -----------and-----------
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