effects of an open economy on monetary and fiscal policy
Pick one of the following: Explain two effects of an open economy on monetary and fiscal policy. or Evaluate the role banks play in world financial markets. Describe two problems with banks as international lenders associated with international debt. Do this in 100-150 words
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Explain two effects of an open economy on monetary and fiscal policy
An open economy has various effects on the monetary and fiscal policies of a county. The first effect is on balance of payments. They affect the economy such that the policies determine the external and internal balances. Most governments use the monetary and fiscal policies to achieve a balance between levels of output and the price levels. The policies are used to choose the most appropriate balance to ensure that the entire economy is well balanced (Van, 2010)……………………….
APA
178 words