Asmall open economy with a floating exchange rate is initially in equilibrium at a with is*1, lm*1. holding all else constant, if domestic consumers develop greater preferences for imported goods, then the curve will shift to . lm; lm*2b. lm; lm*3c. is; is*2d. is; is*3
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Asmall open economy with a floating exchange rate is initially in equilibrium at a with is*1, lm*1....
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