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3. Assume Subban is the name of a developing country. Subban decided to tie its currency (the SU) to the U.S. dollar so the exchange

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3. Assume Subban is the name of a developing country. Subban decided to tie its currency (the SU) to the U.S. dollar so the exchange rate will remain fixed. Subban has frequent trade with countries in the eurozone and the United States. All traded products can easily be produced by all the countries, and the demand for these products in any country is very sensitive to the price because consumers can shift to wherever the products are relatively cheap. Assume that the euro depreciates substantially against the dollar during the following year. a). What is the likely effect (if any) of the euro's exchange rate movement on the volume of Subban's exports to the eurozone? Explain. b). What is the likely effect (if any) of the euro's exchange rate movement on the volume of Subban's exports to the United States? Explain

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