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0:41
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Macro Economics with Michael.
Open-Economy Macro — Open-Economy Policy & Scenarios: True, False or Uncertain? #Shorts
True, False, or Uncertain? Test yourself on Open-Economy Macro. Statement: [Scenario] An open economy with a floating rate and perfect capital mobility runs a big fiscal stimulus. In Mundell-Fleming, this makes real output skyrocket in the long run. Answer: FALSE Fiscal expansion draws capital in, appreciating the currency and fully crowding ...
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