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On a related note, it is also said that fiscal policy is weaker in an internationally open economy. Use an IS-LM graph connected to the NX=NFO graphs to help explain this. Specifically, show an increa...

On a related note, it is also said that fiscal policy is weaker in an internationally open economy. Use an IS-LM graph connected to the NX=NFO graphs to help explain this. Specifically, show an increase in government purchases in the IS-LM graph, and follow the predicted interest rate change through the NX=NFO model. What is Congress trying to do to GDP with this fiscal policy move? Does the resulting change in NX help move GDP in the desired direction, or work against Congress’ goal?

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un act y tocl m intonai e c CFC) RER 2 Real exchan erata appreciates/Hsu , (Suppy Pfmoru ↓) ro noras

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