Closed vs. open economy effects
Expansionary fiscal policy in an open economy
The complete chain
Contractionary fiscal policy in an open economy
Expansionary monetary policy in an open economy
The complete chain
Contractionary monetary policy in an open economy
Summary: policy effectiveness
Why the difference?
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Worked example: recession in an open economy
Twin deficits revisited
AP Exam Tips
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Common Mistakes
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Unit 6 topics
Unit 6 overview6.1Balance of Payments Accounts6.10Economic Integration and Trade Agreements6.2Exchange Rates6.3The Foreign Exchange Market6.4Effect of Changes in Policies and Economic Conditions on the Foreign Exchange Market6.5Changes in the Foreign Exchange Market and Net Exports6.6Real Interest Rates and International Capital Flows6.7The Effect of Trade Policies6.8Fiscal and Monetary Policies in Open Economies6.9Exchange Rate Regimes