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In a small open economy with a floating exchange rate, if the government decreases the money supply, then in the new short-run equilibrium Select one:
In a small open economy with a floating exchange rate, if the government decreases the money supply, then in the new short-run equilibrium
Select one:
a.income falls and the exchange rate rises.
b.the exchange rate falls and income rises.
c.income remains unchanged but the exchange rate rises.
d.the exchange rate remains unchanged but income falls.
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