How do you draw the mundell-Fleming model for the USA's economy during the gold standard. It had low capital mobility, a fixed exchange rate and a restrictive monetary policy. Is my diagram correct. If not can you show me what i done wrong. I showed the IS curve shifting left and the LM curve not changing at all.

How do you draw the mundell-Fleming model for the USA's economy during the gold standard. It had low capital mobility, a fixed exchange rate and a restrictive monetary policy. Is my diagram correct. If not can you show me what i done wrong. I showed the IS curve shifting left and the LM curve not changing at all.

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter19: International Finance And The Foreign Exchange Market

Section: Chapter Questions

Problem 13CQ

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