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FRED.- Trade Weighted U.S. Dollar Index: Broad, Goods and Services 127.5 125.0 122.5 120.0 117.5 Index Jan 2006=100 115.0 112.5 110.0 107.5 105.0 2016-01 2016-07

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FRED.- Trade Weighted U.S. Dollar Index: Broad, Goods and Services 127.5 125.0 122.5 120.0 117.5 Index Jan 2006=100 115.0 112.5 110.0 107.5 105.0 2016-01 2016-07 2017-01 2017-07 2018-01 2018-07 2019-01 2019-07 2020-01 2020-07 Source: Board of Governors of the Federal Reserve System (US) myf.red/g/yog! In the early months of the COVID-19 pandemic, the $US increased due to a "rush to safety" in the global economy. Since then, the $US has weakened about 10% overall. For now we won't worry about the reasons for this, but the graph is above. 1. Using the Z-Y, NX-Y, IS-LM combined graph on the next page, what should be happening as a result of the $US weakening? Show the shifts on the graph itself.

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