About this document

Income Determination in Open Economy by Rahul Kumar Tantwar is a document available to read on EtoBox.

The document provides an overview of the Mundell-Fleming model for analyzing income determination in an open economy. 1. The Mundell-Fleming (M-F) model incorporates the current account into the standard IS-LM model to examine how exchange rates affect spending flows and macroeconomic balance. 2. The model shows that the trade balance and real exchange rate have a relationship that depends on the elasticities of exports and imports. The Marshall-Lerner condition states that currency appreciation improve

Author

Rahul Kumar Tantwar

Language

EN