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When an FE curve, showing the external balance of a country, is superimposed on an IS-LM framework, the position of the FE curve with respect to the

When an FE curve, showing the external balance of a country, is superimposed on an IS-LM framework, the position of the FE curve with respect to the IS-LM equilibrium tells us whether the BoP is in surplus, deficit or exactly zero. Investigate the REASONS for this to be the case. Hint: think fixed vs flexible exchange rates. Thinking forward, a flexible exchange rate eliminates the existence of the surplus or a deficit. So what is happening here? I need to sumbit a short paragraph and a diagram.

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