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In a Flexible Exchange Rate Regime, an Increase in the Expected

Question 37

Multiple Choice

In a flexible exchange rate regime, an increase in the expected future exchange rate will cause:


A) the IP curve to shift to the right/down.
B) the IP curve to shift to the left/up.
C) a movement along the IP curve.
D) the IP curve to become vertical.
E) the IP curve to become horizontal.

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