=+the euro return on euro deposits, and a downward-sloping schedule showing how the euro return on dollar

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=+the euro return on euro deposits, and a downward-sloping schedule showing how the euro return on dollar deposits varies with . Derive this alternative picture of equilibrium and use it to examine the effect of changes in interest rates and the expected future exchange rate. Do your answers agree with those we found earlier?

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International Economics

ISBN: 9780132146654

9th Edition

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

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