Can this small country offset either of these effects throughdomestic open-market operations? (Assume all assets...

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Economics

Can this small country offset either of these effects throughdomestic open-market operations? (Assume all assets are perfectsubstitutes.) A. Yes, by making the domestic interest rate be equalto \( \mathrm{R}^{*} \). B. Yes, through an increase in domesticmoney supply. C. Yes, through a decrease in domestic money supply.D. No, it cannot.

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