(a) If country C has a large commercial deficit (Imports>Exports) and wants to use MONETARY policy to...
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(a) If country C has a large commercial deficit (Imports>Exports) and wants to use MONETARY policy to reduce this deficit what does the country do? (b) What is the impact of this on foreign exchange? If country C is a highly dollarized economy, how does your answer from (a) and (b) change?
Related Book For
International Economics Theory and Policy
ISBN: 978-0273754206
9th Edition
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
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