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1.Luis, a Colombian investor, buys a home in Cancun. The cost of the home is $1M. Mexico has a flexible exchange rate, and Colombia has

1.Luis, a Colombian investor, buys a home in Cancun. The cost of the home is $1M. Mexico has a flexible exchange rate, and Colombia has a flexible exchange rate.

(a)The money supply stays the same in Colombia and stays the same in Mexico.

(b)The money supply goes down in Colombia and goes up in Mexico

(c)None of the above

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