Question: In the following IS-LM figure, start from an initial equilibrium at point B. Suppose exchange rates are flexible. Then an increase in foreign interest rates

 In the following IS-LM figure, start from an initial equilibrium at

In the following IS-LM figure, start from an initial equilibrium at point B. Suppose exchange rates are flexible. Then an increase in foreign interest rates will results in a new equilibrium in this country at H J . . D IS , B K

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