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4) a) Show graphically the impact on the equilibrium rate of interest in the U.S. if the Fed engages in contractionary monetary policy. b) Show

4) a) Show graphically the impact on the equilibrium rate of interest in the U.S. if the Fed engages in contractionary monetary policy. b) Show graphically the impact on the equilibrium exchange rate between the dollar and the pound if the U.K. engages in expansionary monetary policy.

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