The AA schedule shows
A) Interest rate and output pairs at which the foreign exchange market and the domestic money market are in equilibrium.
B) Exchange rate and output pairs at which the foreign exchange market and the domestic money market are in equilibrium.
C) Interest rate and output pairs at which only the foreign exchange market is in equilibrium.
D) Exchange rate and output pairs at which only the foreign exchange market is in equilibrium.
E) Exchange rate and output pairs at which only the domestic money market are in equilibrium.
Correct Answer:
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