Whether mobilization of resources from domestic financial sector leads to crowding out of private sectors investment is just a matter of degree. Inline with this statement discuss
A scenario in which thee could be no crowding out effect
A scenario of 100% crowding out effect
A scenario of relatively small level of crowding out effect
Use clear diagrams to illustrate your answer above.

What is the mundel fleming model
Express the goods market equilibrium equation for the open economy. Include a clear definition of variables used.
What is meant by perfect capital mobility.
What will be the effect on the domestic economy if interest rates were to decrease below the international interest in the context of the mundel fleming model.
Discuss at least two assumptions of mundel fleming model
With the aid of a well labeled diagrams show how the open economy IS curve is derived the goods market.

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