Business executives and policymakers are often concerned about the competitiveness of Canadian industry (the ability of Canadian

Question:

Business executives and policymakers are often concerned about the “competitiveness” of Canadian industry (the ability of Canadian industries to sell their goods profitably in world markets).
a. How would a change in the nominal affect competitiveness in the short-run when prices are sticky?
b. Suppose you wanted to make domestic industries more competitive but did not want to alter aggregate income. According to the Mundell–Fleming model, what combination of monetary and fiscal policies should you pursue?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...