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7 Question 10 (1 point) In the Mundell-Fleming model, in a small open economy with a floating exchange rate, if the Central Bank decreases the
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Question 10 (1 point) In the Mundell-Fleming model, in a small open economy with a floating exchange rate, if the Central Bank decreases the money supply, then in the new equilibrium Income falls and the exchange rate rises The exchange rate falls and income rises Income remains unchanged but the exchange rate rises O The exchange rate remains unchanged but income falls None of the aboveStep by Step Solution
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