Question
Assume that New Zealand maintains a floating exchange rate. If the change in New Zealand's price level is lower than that of its trading partners,
Assume that New Zealand maintains a floating exchange rate. If the change in New
Zealand's price level is lower than that of its trading partners,
1. what impact would this have on the nominal exchange rate?
2. what (long-run) impact would this have on the real exchange rate?
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
