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Q. Analyze the effects of an increase in the European money supply on the dollar/euro exchange rate.
Answer: The major points are: A raise in the European money supply will reduce the interest rate on the euro and therefore causes the euro to depreciate against the dollar. The U.S. money supply and money demand aren't going to be affected and therefore the interest rate in the U.S. will stay the same.
Q. How did the European single currency evolve? Answer: The answer is related to the crumple of Bretton Woods and the European Currency reform of 1969-1978. The Werner
Q. Countries that are willing to tolerate an unusually high quantity of pollution relative to their supplies of other factors would leads to export "pollution-intensive" goods. D
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Q. Discuss the main factors affecting the position of the AA schedule. Answer: Revolutionize in the domestic money supply changes in the domestic price level changes in
Q. What is the national income identity for an open economy? Answer: Y = C + I + G + EX - IM.
Q . Use the following table to demonstrate the significance of macroeconomic policy coordination. Demonstrate that the two governments would have been happier if the two of them h
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