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Illustrate graphically the impact of the IMF proposal on the exchange rate of the small open economy.

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Suppose that the International Monetary Fund (IMF) Suppose that the International Monetary Fund (IMF) Question Suppose that the International Monetary Fund (IMF) is concerned about currency depreciation in a small open economy. Use the basic version of our exchange-rate model for your answers. a. What type of fiscal policy should the IMF propose to the government […]

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