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Exhibit: Policies Influence Real Exchange Rate (A) (B) Real exchange rate, S-1 S-1 Real exchange rate, S-1(3) S-100) NX, --NX NX Net exports NX NX.NX

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Exhibit: Policies Influence Real Exchange Rate (A) (B) Real exchange rate, S-1 S-1 Real exchange rate, S-1(3) S-100) NX, --NX NX Net exports NX NX.NX Net exports (D) Real exchange rate, Real exchange rate, S-1, S-1 S- NX NX NX NX NX Net exports NX Net exports Which of the panels illustrates the impact of an increase in investment demand on the real exchange rate? Select one: O a. (A) b. (B) O c. (C) O d. (D)

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