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C=800+0.8(-) I=900-50 NX=50050 MP=-125 G=500 T=500 M=6000 P=3 r*=8 c. Assume a floating exchange rate. Calculate what happens to the exchange rate, the level of
C=800+0.8(-)
I=900-50
NX=50050
MP=-125
G=500
T=500
M=6000
P=3
r*=8
c.Assume a floating exchange rate. Calculate what happens to the exchange rate, the level of income, net exports, and the money supply if the government reduces its spending by 150.
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