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Assume the government of Kalu nationalized all energy industries in the nation. With confidence in the economy eroded, investors decide to move their funds out

Assume the government of Kalu nationalized all energy industries in the nation.

  1. With confidence in the economy eroded, investors decide to move their funds out of Kalu. Using a correctly labeled foreign exchange graph, show and explain the impact of the investors' decision on the international value of the Kalu dollar.
  2. How does the change in the value of the Kalu dollar impact Kalu's net exports?

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