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Intermediate Macroeconomics
Assignment
Problem 1.
Assume that an iPad in the US is $500 while in Switzerland it costs 400 Swiss Francs. Suppose the nominal Swiss Franc/Dollar exchange rate is 1.1 Swiss Francs per Dollar.
Problem 2. (Show your calculations)
Assume we have the following:
Y = 5,000,000
C = 4,000,000
I = 1,000,000
G = 0
T = 0
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