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Macroeconomics Mundell Fleming Model

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The Mundell-Fleming model takes the world interest rate 7quot;~ as an exogenous variable. Let’s
consider what happens when this variable changes.
a. What might cause the world interest rate to rise?
b. In the Mundell-Fleming model with a floating exchange rate, what happens to aggregate
income, the exchange rate, and the trade balance when the world interest rate rises?
c. In the Mundell-Fleming model with a fixed exchange rate, what happens to aggregate
income, the exchange rate, and the trade balance when the world interest rate rises?Macroeconomics