Discussing the real exchange rate in the short and long run

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Question: Assume a small country with floating exchange rates. Explain what happens with output, real exchange rate in the short and long run, if the government increases government expenditure permanently. Use the AA-DD model. The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131938362

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