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1- Suppose the economy is currently in recession, and the exchange rate if fixed using the IS-LM model.
a) explain and illustrate the economy adjustment ( in the medium run)
b) Explain and illustrate the economy adjustment (in the medium run) without devaluation.
Exchange Rate Policy: LERMS, a dual exchange rate system, was introduced in the Budget for 1992-93. Under this system, 40 per cent of foreign exchange earnings were to be sur
1- Suppose the economy is currently in recession, and the exchange rate if fixed using the IS-LM model. a) explain and illustrate the economy adjustment ( in the medium run)
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