Assume prices are flexible, factors of production are fully employed in both countries and there is perfect capital mobility in the small open economy. Compare the impact of an increase in investment...


Assume prices are flexible, factors of production are fully employed in both countries and there is perfect capital mobility in the small open economy. Compare the impact of an increase in investment demand in:


1- Small open economy.


2- large open economy.



Jun 09, 2022
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