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In the lambda expression $(λx. (λy. (x y)) y) z$, the body of the abstraction is taken as $(λy. (x y))y$ and not just $(λy. (x y))$. Why isn't $(λy. (x y))$ considered as the body and the following $y$ as an argument to it instead of $z$ being an argument to the body $(λy. (x y))y$?

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