(Extra Credit) Suppose policymakers want to raise the level of investment (real invest- ment I in the national accounts)

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(Extra Credit) Suppose policymakers want to raise the level of investment (real invest- ment I in the national accounts)

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Extra Credit Suppose Policymakers Want To Raise The Level Of Investment Real Invest Ment I In The National Accounts 1
Extra Credit Suppose Policymakers Want To Raise The Level Of Investment Real Invest Ment I In The National Accounts 1 (23.71 KiB) Viewed 31 times
(Extra Credit) Suppose policymakers want to raise the level of investment (real invest- ment I in the national accounts) without changing aggregate income or the exchange rate. Illustrate the answers to the following questions using the open economy IS/LM diagram. (a) Is there any combination of domestic monetary and fiscal policy that would achieve this goal? (b) Is there any combination of domestic monetary, fiscal, and trade policy that would achieve this goal?
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