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a) Use the Mundell-Fleming model of a Small Open Economy under Perfect Capital Mobility to illustrate the efficacy of fiscal and monetary policy under a fixed exchange rate regime and a flexible
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Fixed exchange rates
According to the Mundell-Fleming model, when exchange rates are fixed and capital is perfectly mobile, will fiscal or monetary policy be more successful? Explain. | Study.com
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The Mundell-Fleming Model in the Small Open Economy (a.k.a. IS -LM )
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Mundell - Fleming Model & Open Economy of a Country