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01a. Suppose US is your home country and Europe is foreign country and you have spare $1 ill} for a year to investment on domestic

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01a. Suppose US is your home country and Europe is foreign country and you have spare $1 ill} for a year to investment on domestic deposit or Euro deposit. Explain with the help of diagrams how increase in US domestic money supply in short run can affect interest rate and exchange rate? (hint: diagram is required} C1 b. Suppose US is your home country and Europe is foreign country and you have spare $1t} for a year to investment on domestic deposit or Euro deposit. Explain with the help of diagrams how decrease in EU income can affect Euro interest rate and exchange rate? (hint: diagram is required] l[31c Suppose US is your home country and Europe is foreign country and you have spare $1l} for a year to investment on domestic deposit or Euro deposit. Explain with the help of diagrams if US interest rate will decline in the near future, but no change in current interest rates, hoyur can it affect current exchange rate? (hint: diagram is required]

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