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The Federal Reserve sells dollars in the foreign exchange market but does not sterilize the intervention. 1) Using the line drawing tool, show the
The Federal Reserve sells dollars in the foreign exchange market but does not sterilize the intervention. 1) Using the line drawing tool, show the short-run impact of this policy Label your line 'DSR' 2) Using the line drawing tool, show the long-run impact of this policy Label your line 'DLR' 3) Using the point drawing tool, show the long run impact on the exchange rate Label the new point '2' Carefully follow the instructions above, and only draw the requwed objects. 2 T, _8 s Quantity of Dollar Assets
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