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Economics
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13 Dec 2019

Describe the chain of events leading to exchange rate determination for the following cases:

(a) An increase in U.S. money supply

(d) Increase in growth rate of U.S. money supply

(c) Increase in world relative demand for U.S. products

(d) Increase in relative U.S. output supply

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Related questions

An increase in the money supply in the U.S will not

A. cause the U.S interest rate to decline relative to interest rates in other countries.

B. cause the value of the dollar to decrease relative to other assets.

C. cause the amount of net exports from the U.S to increase, as exports rise and imports fall.

D. cause the value of investing in U.S financial assets to become more desirable to foreign investors.

For the U.S. economy, which of the following helps explain the slope of the aggregate demand curve?
 
a. An increase in the price level decreases the interest rate.
b. An increase in the price level increases the interest rate.
c. An increase in the money supply decreases the interest rate.
d. An increase in the money supply increases the interest rate.
The foreign purchases effect on aggregate demand suggests that an increase in the U.S. price level relative to other countries
A) increase the amount of U.S. real output purchased.
B) increase U.S. imports and decrease U.S. exports.
C) increase both U.S. imports and U.S. exports.
D) decrease both U.S. imports and U.S. exports

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