Question
Australia and the UK are trade partners (Australia is the foreign country UK is the domestic country). Say the UK operates under fixed exchange rate
Australia and the UK are trade partners (Australia is the foreign country UK is the domestic country). Say the UK operates under fixed exchange rate regime. Explain how an increase in Australia's interest rate will influence aggregate demand in the UK. State your assumption about capital mobility.
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
