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In a short-run model of a large open economy with a floating exchange rate, a monetary contraction ca uses an increase in the interest rate
In a short-run model of a large open economy with a floating exchange rate, a monetary contraction ca uses an increase in the interest rate and: C\" a. net exports and net capital outflow but increases in investment and income. C\" b. the exchange rate and decreases in income, net capital outflow, and net exports. '3' c. the exchange rate but has no effect on income. f3\" cl. the exchange rate and netcapital outflow and increases in income and net exports
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