Compare the Effectiveness of Fiscal Policy in an Open Economy

question 161

Essay

Compare the effectiveness of fiscal policy in an open economy with mobile international capital to fiscal policy in a closed economy.Why is it different? Use an appropriate diagram to illustrate your answer.

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Definitions:

Eclectic Approach

An approach to psychotherapy that, depending on the client’s problems, uses techniques from various forms of therapy.

Therapeutic Approaches

Various methodologies and practices used in psychological treatment to help individuals deal with mental health issues, emotional challenges, and behavioral problems.

Psychological Theories

Formal ideas proposed to explain how and why human behaviors, thoughts, and feelings develop.

Transference

In psychoanalysis, a phenomenon where a patient projects feelings about important figures in their life onto the therapist.