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If we start from a long - run general equilibrium of the goods, forex, and money markets, and there is a temporary contraction of the
If we start from a longrun general equilibrium of the goods, forex, and money markets, and there is a temporary contraction of the money supply, what is the outcome?
GDP falls, the interest rate falls, and the exchange rate rises depreciation
GDP rises, the interest rate falls, and the exchange rate rises depreciation
GDP rises, the interest rate rises, and the exchange rate falls appreciation
GDP falls, the interest rate rises, and the exchange rate falls appreciation
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