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Suppose a government bans non-domestic investors from buying shares in the country's stock market. According to the open economy IS/LM model: a. Domestic currency appreciates
Suppose a government bans non-domestic investors from buying shares in the country's stock market. According to the open economy IS/LM model:
a. Domestic currency appreciates because the LM curve shifts right
b. GDP falls because the NX curve shifts right
c. Domestic currency depreciates because the CF curve shifts right
d. GDP falls because the LM curve shifts right
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