Suppose the Federal Reserve is concerned about an inflationa

Suppose the Federal Reserve is concerned about an inflationary gap, and as a result the Fed conducts… Show more Suppose the Federal Reserve is concerned about an inflationary gap, and as a result the Fed conducts contractionary monetary policy. Under a floating exchange rate system, how will this affect AD and price level. Make sure you discuss all the possible effects on the components of Aggregate demand (C, I , X and IM) • Show less

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