Use the following to answer questions :
Exhibit: IS*-LM* and AD
-(Exhibit: IS*-LM* and AD) A small open economy with a floating exchange rate is initially in equilibrium at A with Holding all else constant, if the domestic price level decreases, then the _____ curve will shift to _____.
A) LM1*;
B) LM1*;
C) IS1*;
D) IS1*;
Correct Answer:
Verified
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