What was the effect on the us is curve

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Reference no: EM131213826

According to the Board of Governors of the Federal Reserve System, the real effective exchange rate of the U.S. dollar (relative to the rest of the world) went from 110 in late 2002 to 100 in late 2003.

Looked at the other way, the real exchange rate of the rest of the world relative to the dollar went from 91 in late 2002 to 100 in late 2003.

Did the international price competitiveness of U.S. products improve or worsen from late 2002 to late 2003? Other fundamental things equal, what was the effect (if any) on the U.S. IS curve? On the U.S. FE curve?

Reference no: EM131213826

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