Summary
Summary Mundell-Fleming model questionnaire
- Course
- Institution
questionnaire of mundell fleming model.Go through with it and enjoy in your exams.
[Show more]
Seller
Follow
abhay
Reviews received
Content preview
Mundell-Fleming model1. (a) In the Mundell-Fleming model with floating exchange rates,
explain what happens to aggregate income, the exchange rate and the
trade balance when a quota on imported cars is removed.
In the Mundell–Fleming model under floating exchange rates, removing a
quota on imported cars shifts the net exports schedule inward, as shown
in Figure 3. As in the figure, for any given exchange rate, such as e, net
exports fall. This is because it now becomes possible for locals to buy
more Toyotas, Fords, and other foreign cars than they could when there
was a quota.
Figure 3
This inward shift in the net-exports schedule causes the IS* schedule to
shift inward as well, as shown in Figure 4.
1
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller abhay. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.79. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53068 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now