where a country which currently uses a fixed exchange rate regime; If the central bank were to increase the money supply, what impacts would it have on the economy? Use a diagram to explain your answer.

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter22: International Finance
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where a country which currently uses a fixed exchange rate regime; If the central bank were to increase the money supply, what impacts would it have on the economy? Use a diagram to explain your answer.

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