Question: Analytically discuss and illustrate graphically the effects in the foreign exchange market of an expansionary monetary policy carried out by a foreign country (not home

Analytically discuss and illustrate graphically the effects in the foreign exchange market of an expansionary monetary policy carried out by a foreign country (not home country) in a two country framework. Consider the case of both fixed and flexible exchange rate.

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2. Information that comes most readily to mind (availability).

3. An initial value (anchoring).

4. Similarity (representativeness).