The economy is in recession  and uses  fixed exchange rate system ,  which policy would  be effective  to bring the economy out of recession? Use graph to support your answer and explain.  (With perfect asset substitutability and capital mobility)

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter22: International Finance
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The economy is in recession  and uses  fixed exchange rate system ,  which policy would  be effective  to bring the economy out of recession? Use graph to support your answer and explain.  (With perfect asset substitutability and capital mobility)  

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