5 Use Figure 22.2 to show the effect of a fall in demand for British goods in...

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5 Use Figure 22.2 to show the effect of a fall in demand for British goods in terms of

(a) the balance of payments measured in terms of pounds and

(b) the balance of payments measured in terms of US dollars. Show also the movements of curves that the deficit and associated contraction in the money supply will create in restoring equilibrium.

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