Fiscal Policy and Fixed Exchange Rates in the Short Run
{"Image DocumentName": "Fiscal Policy and Fixed Exchange Rates in the Short Run", "Image ImageDescription": "Temporary changes in fiscal policy are more effective in influencing output and employment in the short run: The rise in aggregate demand and output due to expansionary fiscal policy raises demand of real monetary assets, putting upward pressure on interest rates and on the value of the domestic currency. To prevent an appreciation of the domestic currency, the central bank must buy foreign assets, thereby increasing the money supply and decreasing interest rates. Copyright \u00a9 2009 Pearson Addison-Wesley. All rights reserved.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}