1. Consider the model of relative demand and relative supply. Suppose that the supply of Foreign output changed. Because of the change, Home currency real-appreciated.
1. Consider the model of relative demand and relative supply. Suppose that the supply of Foreign output changed. Because of the change, Home currency real-appreciated. Answer how Foreign output changed: Increased or Decreased, and to which direction the RS curve would shift: Left or Right Change in YF: Direction
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