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Saudi Arabia is a country with a fixed exchange rate. The country now has a balance of payment surplus due to the high oil price.

Saudi Arabia is a country with a fixed exchange rate. The country now has a balance of payment surplus due to the high oil price. The country also has a fast growing economy with inflationary pressure. In the IS-LM-FE diagram, should the IS-LM intersection be above or below the FE curve?

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