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Thank you Consider an economy at equilibrium at output Y1 and interest rate r1=rf according to the open economy Mundell-Fleming model with a floating exchange

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Consider an economy at equilibrium at output Y1 and interest rate r1=rf according to the open economy Mundell-Fleming model with a floating exchange rate. Suppose the economy is hit by the emergence of consumers' pessimism. At the end of the adjustment process, O Net export will be larger Consumption will be back to the initial level Interest rate will be smaller Net export will smaller

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