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Question
Figure 13.2
Refer to Figure 13.2. Starting from an equilibrium point A, if the IS curve shifts to the left to IS2,
a. there will be official settlement deficit which pressures the domestic currency to depreciate.
b. there will be official settlement deficit which pressures the domestic currency to appreciate.
c. there will be official settlement surplus which pressures the domestic currency to depreciate.
d. there will be official settlement surplus which pressures the domestic currency to appreciate.
Answer
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Related questions
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