Use the following to answer questions :
Exhibit: Policies Influence Real Exchange Rate
-(Exhibit: Policies Influence Real Exchange Rate) Which of the graphs illustrates the impact on the real exchange rate of contractionary fiscal at home,in the basic version of the small open economy model?
Definitions:
Unanimous
Agreement by all people involved; a situation where everyone shares the same opinion or decision.
Normative Social Influence
External social pressures that drive us to adjust ourselves in efforts to be embraced and approved by others.
Group Polarization
The phenomenon where a group of individuals tends to make decisions that are more extreme than the initial inclination of its members.
Approval
The act of accepting or consenting to something, often given formally or officially.
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