Multiple Choice
The figure given below depicts the IS-LM-FE model with floating exchange rates. 
The shift of the IS curve from IS1 to IS2 was caused by:
A) a contractionary monetary policy.
B) official intervention in the foreign exchange market.
C) an improvement in current account position.
D) a worsening of international price competitiveness.
Correct Answer:
Verified
Correct Answer:
Verified
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