The figure given below depicts the IS-LM-FE model with floating exchange rates. The shift of the FE curve from FE₀ to FE₁ was caused by: A)a contractionary monetary policy. B)official intervention in the foreign exchange market. C)an improvement in current account position. D)an appreciation of the country's currency.

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The Answer of The figure given below depicts the IS-LM-FE model with floating exchange rates. The shift of the FE curve from FE₀ to FE₁ was caused by: A)a contractionary monetary policy. B)official intervention in the foreign exchange market. C)an improvement in current account position. D)an appreciation of the country's currency.

The Figure Given Below Depicts the IS-LM-FE Model with Floating