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India is facing inflationary pressures and the RBI takes steps to alter the interest rate to curb inflationary pressures. Suppose, India follows a flexible exchange
India is facing inflationary pressures and the RBI takes steps to alter the interest rate to curb inflationary pressures. Suppose, India follows a flexible exchange rate regime and has complete capital mobility. You are an exporter of pearls to the United States. Ceteris paribus, what would be the impact of the monetary policy on your revenues?
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