Using graphs show how you would establish the following


Using graphs, show how you would establish the following proposition: " In a small open economy operating a fixed exchange rate, in which domestic and foreign bonds are imperfect substitutes, in the absence of sterilization the effect/ of an increase in the world interest rate on domestic interest rate will be larger the closer the degree of substitutability between domestic and foreign bonds."

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Business Economics: Using graphs show how you would establish the following
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