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QUESTION ATTACHED :5 5*, Output. 1mm. r E. Exchange rain. I The above figure shows the equilibrium in the lS-LM-FX model. Describe the effects on

QUESTION ATTACHED

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:5 5*, Output. 1mm. r E. Exchange rain. I The above figure shows the equilibrium in the lS-LM-FX model. Describe the effects on interest rate, output and exchange rate of a temporary contractionary scal policy {a decrease in government spending]. Explain how the curves shift in this process

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