2 According to the Mundell-Fleming model the IS* curve out of n Select one: a. is vertical because the exchange rate does not enter into the IS* equation. O b. is vertical because there is only one investment level that is consistent with the world interest rate. O c. slopes downward and to the right because the higher the exchange rate, the lower the level of net exports and, therefore, of short-run equilibrium income in the goods market. O d. slopes downward and to the right because the higher the exchange rate, the higher the level of net exports and, therefore, of short-run equilibrium income in the goods market. O e. slopes upward and to the right because the lower the exchange rate, the lower the level of net exports