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Mundeii-Fieming model (E1)<br />An open economy model extending the IS-LM model on which an FF curve is imposed to show that the economy is in equilibrium when there are equilibria in its money and goods markets and its imports equal its exports. The TERMS oF TRADE affect the positions of both the IS and FF curves.<br /><em>See also:</em> IS-LM curves <br /><em>Reference</em><br />Mundell, R.A. (1968) International Economics, New York: Macmillan.
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capital re-switching (D2)<br />A return to more CAPITAL-INTENSIVE methods of production because a technique has become more profitable through an increase in the marginal product of capital or a fall in the rate of interest.<br /><em>See also:</em> Cambridge controversies
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