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Suppose that the British central bank decides to abandon their restrictive monetary policy and pursue an unexpected expansionary monetary policy. The sudden shift in policy
Suppose that the British central bank decides to abandon their restrictive monetary policy and pursue an unexpected expansionary monetary policy. The sudden shift in policy would have all of the following effects EXCEPT: an increase in the relative price of imported goods a deficit in the financial account an increase in the domestic price level a decrease in the relative attractiveness of investment opportunities outside Britain
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