Question
1) a) Use the IS/LM model and the FOREX market to illustrate how a decrease in the U.S. money supply affects its own output and
1)
a) Use the IS/LM model and the FOREX market to illustrate how a decrease in the U.S. money supply affects its own output and its exchange rate with the EU in the short run.
b) discuss how expected exchange rates change to illustrate the long run effects of a permanent money supply reduction on the exchange rates.
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Financial Accounting Making The Connection
Authors: J David Spiceland, Wayne Thomas, Don Herrmann
1st Edition
0077862260, 9780077862268
