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Please help to illustrate the scenario by graph and detailed explanation with formula. Thanks! d. Draw the lS-LM-UIP diagram for the case where the domestic

Please help to illustrate the scenario by graph and detailed explanation with formula. Thanks!

d. Draw the lS-LM-UIP diagram for the case where the domestic country has an overvalued nominal exchange rate. Show how the economy can return to its to medium-run equilibrium when a valuation is a policy choice

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