The relationship between Mundell-Fleming Model and IS curve

macro

我的想法

Differences between the Mundell-Fleming Model and the IS curve is that the Mundell-Fleming Model adds in the $NX$ (net export)

So the equation would be

Now, $Y=C+I+G+NX$

$=C(Y-T)+I(r^{\ast })+G+NX(e)$

Where, $NX=export-import$, $e$ is the real exchange rate, and $\frac{\delta I}{\delta r}<0$, $\frac{\delta NX}{\delta e}<0$

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Reference