Discuss the following statement: When a change in a country's nominal interest rate is caused by a

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Discuss the following statement: "When a change in a country's nominal interest rate is caused by a rise in the expected real interest rate, the domestic currency appreciates. When the change is caused by a rise in expected inflation, the currency depreciates." (It may help to refer back to Chapter 14.)

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International Economics Theory & Policy

ISBN: 9780138002121

8th Edition

Authors: Paul R Krugman, Maurice Obstfeld

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