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02 (10 points) Consider an open economy with a floating exchange rate. Theaggregate demand curve of the economy is: AD(Y, EDI'F) = d + 0'1Y1'EDIF

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02 (10 points) Consider an open economy with a floating exchange rate. Theaggregate demand curve of the economy is: AD(Y, EDI'F) = d + 0'1Y1'EDIF where d > 0 is a constant. ** Part a (5 marks) Find the equation of the DD curve in terms of the constant 45!. ** Part b (5 marks) Suppose that (1 increases. Show mathematically how does the DD curve move (shifts up or shift down)

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