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By Using the figure describing both the U.S. money market and The foreign exchange market, analyze the effects of an increase in the U.S. money supply on the dollar or euro exchange rate.
Answer: A elevate in the U.S. money supply will origins the interest rate to decrease. This must increase investment and possibly consumption of durable goods. The decrease in the interest rate will cause a movement to the left along the schedule depicting the expected euro return expressed in dollars. The result is an enhancement in E or a depreciation of the dollar.
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Canadian consumers have 50 dollar in come this is eual to the gross domestic product. they spand 35 dollars on comuser goods (25 on canadian goods annd 10 on imports) they save 8
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how do I graph partial equilibrium analysis with transport costs
Lot of
heberler''s theory of opportunity cost notes
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