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I would like if you can illustrate the answer graphically. I had to post this twice cause they don't illustrate the graph. 9. Combine the

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I would like if you can illustrate the answer graphically. I had to post this twice cause they don't illustrate the graph.

9. Combine the graph showing the interest parity condition and one showing money demand and supply to demonstrate simultaneous equilibrium in the money market and the foreign exchange market. How would a decrease in the U.S. money supply affect the Dollar/Euro exchange rate and the U.S. interest rate? Illustrate your answer graphically and explain. (10\%) 9. Combine the graph showing the interest parity condition and one showing money demand and supply to demonstrate simultaneous equilibrium in the money market and the foreign exchange market. How would a decrease in the U.S. money supply affect the Dollar/Euro exchange rate and the U.S. interest rate? Illustrate your answer graphically and explain. (10\%)

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