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7. Show and explain the implications of the following on the balance of payments curve: 3. Domestic prices are rising. b. The exchange rate is

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7. Show and explain the implications of the following on the balance of payments curve: 3. Domestic prices are rising. b. The exchange rate is falling. 8. You are an economic adviser in Country X which adopts a exible exchange system and capital flows are perfect. If the country wants to increase its output level. is there an expansionary monetary or scal policy that needs to be implemented? Discuss

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