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Assume that it will be a trade deficit for Sweden in 2021 and the aim is to improve the trade deficit. How can Sweden improve

Assume that it will be a trade deficit for Sweden in 2021 and the aim is to improve the trade deficit.

  1. How can Sweden improve its trade balance using the exchange rate as an instrument?Explain your answer.
  2. What will be the dynamic effects of this exchangeratepolicy?Explain by words and show graphically.

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