Question: Consider an Open Economy with Fixed Exchange Rate. What is the accompanying movement in IS/LM when AS shifts. Assume that AD is downward sloping

Consider an Open Economy with Fixed Exchange Rate. What is the accompanying

Consider an Open Economy with Fixed Exchange Rate. What is the accompanying movement in IS/LM when AS shifts. Assume that AD is downward sloping and does not shift. a. IS shift b. LM shift c. Both a. and b. d. Neither a. nor b.

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