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a. Use the ISLM to illustrate the impact on Y, i, E, and the trade balance if there was a sudden temporary decrease in consumer

a. Use the ISLM to illustrate the impact on Y, i, E, and the trade balance if there was a sudden temporary decrease in consumer confidence due to bad news about the future course of the pandemic (they feel worse about their job prospects and debt levels). Draw the shock, and then explain what happened to each variable.

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