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Assume the United States has the following import / export volumes and prices. It undertakes a major devaluation of the dollar, say 1 8 %
Assume the United States has the following importexport volumes and prices. It undertakes a major "devaluation" of the dollar, say on average against all major trading partner currencies hence the dollar goes from a value of $fc to a value of $fc
Initial spot exchange rate, $fc:
Price of exports, dollars $: :
Price of imports, foreign currency fc:
Quantity of exports, units:
Quantity of imports, units:
Percentage devaluation of the dollar:
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