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A country called Timbuktu is recording a high level of inflation relative to Malaysia. Explain how the high inflation affects the exchange rate between the
A country called Timbuktu is recording a high level of inflation relative to Malaysia. Explain how the high inflation affects the exchange rate between the Timbuktu dollar against the Malaysian ringgit (you can assume that inflation in Malaysia remains the same). Suppose that the government of Timbuktu hans international trade with Malaysia. How would this affect your previous answer? (10 marks]
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