Question: 15. [6 points] How does final contraction affect the current account under a fixed exchange rate? [6 points] Do you expect the changes in current

15. [6 points] How does final contraction affect the current account under a fixed exchange rate? [6 points] Do you expect the changes in current account to be smaller or larger under floating than under a peg (fixed exchange rate)? Explain your reasoning carefully to get full credit

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