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Assume the Exchange Rate Is Allowed to Fluctuate Freely

question 36

Essay

Assume the exchange rate is allowed to fluctuate freely.Using the IS-LM-IP model,graphically illustrate and explain what effect monetary contraction will have on the domestic economy.In your graphs,clearly label all curves and equilibria.


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A country located at the southern tip of Africa, known for its diverse culture, history, and landscapes.

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A country in Northeast Africa, known for its ancient civilization, pyramids, and its capital city, Cairo.

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