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In the Following Diagram, with Fixed Exchange Rates

Question 15

Multiple Choice

In the following diagram, with fixed exchange rates,
In the following diagram, with fixed exchange rates, The economy is in domestic equilibrium at income level __________ and there is__________. A) Y<sub>1</sub>; a balance-of-payments surplus B) Y<sub>2</sub>; a balance-of-payments deficit C) Y<sub>2</sub>; a balance-of-payments surplus D) Y<sub>3</sub>; equilibrium in the balance of payments
The economy is in domestic equilibrium at income level __________ and there is__________.


A) Y1; a balance-of-payments surplus
B) Y2; a balance-of-payments deficit
C) Y2; a balance-of-payments surplus
D) Y3; equilibrium in the balance of payments

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