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A. Explain how money supply affects exchange rates and the role of interest rates in explaining such relations. User graphs, formulas, or words. b. What

A. Explain how money supply affects exchange rates and the role of interest rates in explaining such relations. User graphs, formulas, or words.

b. What would the effect of a sudden depreciation of the currency, by monetary policy (increasing the money supply) have on the current account (export - import) over time? User graphs, formulas, or words.

What is this phenomena sometimes called?

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