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QUESTION
A small open economy with a floating exchange rate is in recession with balanced trade.
A small open economy with a floating exchange rate is in recession with balanced trade. If policy makers want to reach full employment while maintaining balanced trade, what combination of monetary and fiscal policy should they use?
Running head: FISCAL AND MONETARY POLICIES Fiscal and Monetary PoliciesStudent’s NameInstitution 1 FISCAL AND MONETARY POLICIES 2 Fiscal and Monetary PoliciesBased on the nature of the economy...