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Question-6: Use the MundellFFleming model to predict what would happen to aggregate income, the exchange rate, and the trade balance in response to decrease in

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Question-6: Use the MundellFFleming model to predict what would happen to aggregate income, the exchange rate, and the trade balance in response to decrease in money supply in a small open economy under different exchange rate regimes: a. (5 Points) Floating exchange rates regime b. (5 Points) Fixed exchange rates regime

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