Question: With the help of diagrams, explain the effects of expansionary and contractionary monetary and fiscal policies on output, price level, exchange rate and net exports under fixed and flexible exchange rate regimes in a small open economy with perfect capital mobility.See the answerSee the answerSee the answer done loadingWith the help of diagrams, explain the effects of expansionary and contractionary monetary and fiscal policies on output, price level, exchange rate and net exports under fixed and flexible exchange rate regimes in a small open economy with perfect capital mobility.
