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Given an Open Economy with High Capital Mobility and Floating

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Given an open economy with high capital mobility and floating exchange rates,suppose an expansionary fiscal policy is implemented to combat recession.The initial and secondary effects of the policy

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Definitions:

External Regulations

Rules, laws, and guidelines imposed by external entities that an organization must comply with.

Ethical Responsibility

The duty to act in a morally correct manner, both individually and within a professional or societal context.

Corporate Behaviour

The actions, attitudes, and values demonstrated by a company and its employees, which influence its reputation and culture.

Moral Expectations

Standards or beliefs regarding what is right or wrong behavior within a society or group.

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