5 How do we know that an exogenous increase in exports will cause a currency to appreciate...

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5 How do we know that an exogenous increase in exports will cause a currency to appreciate even though the balance of payments is always zero? How does your answer relate to the law of supply and demand whereby supply equals demand even after demand has increased?

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International Finance

ISBN: 9780070374812

4th Edition

Authors: Maurice D. Levi

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