Consider the following events in an IS-LM framework under the assumption of imperfect capital mobility in a small open economy with flexible exchange rates:
A. Central bank increases the money supply.
B. Domestic interest rate falls below the global rate.
C. Capital outflow leads to currency depreciation.
D. Net exports increase, raising output.
Arrange these in the correct logical sequence of adjustment:
1
A → B → C → D
2
B → C → A → D
3
C → D → A → B
4
D → B → C → A