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The Figure Given Below Depicts the IS-LM-FE Model with Floating

Question 18

Multiple Choice

The figure given below depicts the IS-LM-FE model with floating exchange rates. The figure given below depicts the IS-LM-FE model with floating exchange rates. The shift of the FE curve from FE<sub>0</sub> to FE<sub>1</sub> was caused by: A) a contractionary monetary policy. B) official intervention in the foreign exchange market. C) an improvement in current account position. D) an appreciation of the country's currency. The shift of the FE curve from FE0 to FE1 was caused by:


A) a contractionary monetary policy.
B) official intervention in the foreign exchange market.
C) an improvement in current account position.
D) an appreciation of the country's currency.

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