1. In Mundell assignment model, why do IB line and EB line slope downward? And why is EB line flatter than IB line?
2. What is the conclusion of Mundell assignment model? If the economy is initially in inflation and BP surplus, use the model to analyze the effective way to restore overall balance.
3. In a r-Y figure, explain why IS slopes downward, LM upward and BP upward (vertical, horizontal).
4. Use IS-LM-BP model to analyze the effect of fiscal policy when capital is perfectly immobile and the exchange rate is fixed.
2. What is the conclusion of Mundell assignment model? If the economy is initially in inflation and BP surplus, use the model to analyze the effective way to restore overall balance.
3. In a r-Y figure, explain why IS slopes downward, LM upward and BP upward (vertical, horizontal).
4. Use IS-LM-BP model to analyze the effect of fiscal policy when capital is perfectly immobile and the exchange rate is fixed.
