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    Macroeconomics Study Set 11
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    Exam 19: Output, the Interest Rate, and the Exchange Rate
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    Contractionary Monetary Policy in a Flexible Exchange Rate Regime Will
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Contractionary Monetary Policy in a Flexible Exchange Rate Regime Will

Question 69

Question 69

Multiple Choice

Contractionary monetary policy in a flexible exchange rate regime will cause


A) a shift of the IP curve.
B) a depreciation of the domestic currency.
C) an increase in E.
D) no change in E.

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