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In an open-economy scenario, which includes NX in AD, assume an increase in interest rates...

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Accounting

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In an open-economy scenario, which includes NX in AD, assume an increase in interest rates in the U.S. occurs from contractionary Monetary policy actions in an effort to curb inflationary pressures. In this open economy environment create the diagram of the Foreign currency market (properly labeled with equilibrium pts shown), and explain the changes that would have occurred in that market in this situation, and relate/explain the effects on AD, based on material from the lecture videos and textbook

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