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pleas assist LM' 3? IS Referring to the figure above, considering point b if this economy were a flexible exchange rate regime the next likely

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pleas assist

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LM' 3? IS Referring to the figure above, considering point b if this economy were a flexible exchange rate regime the next likely event would be? the exchange rate would depreciate O 0 central bank sells FXto stabilize the exchange rate central bank buys FX to stabilize the exchange rate 0 0 capital outflow would cause the currency to appreciate

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