Question: Assume the central bank begins to decrease its financial security holdings (open market sales) in an effort to reduce surging inflation which is exceeding the

Assume the central bank begins to decrease its financial security holdings (open market sales) in an effort to reduce surging inflation which is exceeding the central bank's goal of 2% inflation.The nation has flexible exchange rates, high capital mobility, and the central bank does not intervene in the foreign exchange markets.

1.Show the shift in the supply or demand by RLF by inserting a new curve.Insert arrows to show the change in R and RLF.

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