Question: pls help me with the question below, thanks! Question 5: [15 marks] A. In an open economy that is on a xed exchange rate, show
pls help me with the question below, thanks!
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Question 5: [15 marks] A. In an open economy that is on a xed exchange rate, show the short run effects on output and interest rate of a decrease in consumer condence. To answer this question, draw the following four diagrams: 1. The goods market, 2. The money market, 3. The ISLM curves, and 4. The interest parity condition. Clearly label the initial and new equilibrium points in each diagram. Provide brief explanations for the changes
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