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What are the effects of an expansionary fiscal policy on interest rates and output in an open economy with floating exchange rates?
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Two-World Assumption
The belief in a distinct separation between the tangible, empirical world and an intangible, often spiritual or theoretical world.
Skepticism
The philosophical belief that knowledge is not possible, that doubt will not be overcome by any valid arguments. A philosopher who holds this belief is called a skeptic. Skepticism is not merely personal doubt but also requires systematic doubt, with reasons for that doubt.
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