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4. Assume that mismanagement in the US results in significantly higher inflation. Show what will happen on the graph and identify what will happen to
4. Assume that mismanagement in the US results in significantly higher inflation. Show what will happen on the graph and identify what will happen to the international value of the dollar. US Dollars (USD) S The dollar will depreciate S2 Demand will decrease because foreigners would want to buy less US products. Supply will increase because Americans would want to buy cheaper imports. The of the dollar will don this
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