I need the illustration as well - due Wewd 6pm PST TODAY
The recent election in France has reduced its risk premium. Using the IS-LM model for a small open economy, show the impact of this decline in risk premium on net exports and output. Consider both the flexible and the fixed exchange rate regimes for your answer. That is, first explain the answer for the flexible exchange rate regime and then show the results for the fixed exchange rate regime.
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