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Country: United States of America 1: Is the trade balance sensitive to changes in foreign prices for imports and exports? 2: Estimate which quadrant of

Country: United States of America

1: Is the trade balance sensitive to changes in foreign prices for imports and exports?

2: Estimate which quadrant of the SWAN diagram your country of choice may be operating in?

3: What might that predict about the role for policymakers?

4: What drives the RER - is it changes in the price of Non tradeables or the nominal exchange rate?

5: What does the RER suggest about the countiries competitiveness?

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