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Consider an economy under a fixed exchange rate system. Which one of the following will result in a new equilibrium in which the central bank

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Consider an economy under a fixed exchange rate system. Which one of the following will result in a new equilibrium in which the central bank ends up with more foreign exchange reserves? - Bp , below BP BP, A) A balance of payments crisis if shock in economy to IS LM or BP below rule of B) A fall in real money demand thumb such that the intersection of IS and L! after the shock , lie above BP. C) A boom in the foreign country blames the bonds are more attractive than D) None of the above foreven bonds . People sell foreign bonds and convert to to of to buy A bonds. To keep exchange rate forved, Central Bank buys Baros

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