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Suppose the European Central Bank (ECB) pursues a monetary policy that causes the interest rate in the euro area to fall. The gure to the

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Suppose the European Central Bank (ECB) pursues a monetary policy that causes the interest rate in the euro area to fall. The gure to the right shows the market for the euro in equilibrium at exchange rate R1 . 1.) Using the line drawing tool, show the impact on the demand for eurast Properly label your line 2.) Using the line drawing (00/, show the impact on the supply of euros. Properly label your line. Carefully follow the instructions and only draw the required objects. R($Ieuro) Foreign Exchange Market Quantity of euros

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