3. Other things equal, how would you expect the following shifts to affect a currency's real exchange

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3. Other things equal, how would you expect the following shifts to affect a currency's real exchange rate against foreign currencies?

a. The overall level of spending doesn't change, but domestic residents decide to spend more of their income on nontraded products and less on tradables.

b. Foreign residents shift their demand away from their own goods and toward the home country's exports.

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International Economics Theory And Policy

ISBN: 9780321116399

6th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz

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Question Posted: Oct 01, 2024 11:01 AM

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3. Other things equal, how would you expect the following shifts to affect a currency's real exchange

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International Economics Theory And Policy

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