Different Behavioural Functions

In the preceding chapters we assumed that union countries had the same behavioural functions. In the current chapter, instead, we assume that union countries differ in behavioural functions. Consider for example an increase in union money supply. Then what will be the effect on German output, and what on French output? In solving this problem it is helpful to discuss three cases: Union countries differ in the income sensitivity of money demand.Union countries differ in the propensity to consume.Union countries differ in the degree of openness.