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Describe what happens in the Money market and the FOREX market with graphs ( make sure to include: Exchange rate expectations (EeH/F), price levels( PH,
Describe what happens in the Money market and the FOREX market with graphs ( make sure to include: Exchange rate expectations (EeH/F), price levels( PH, PF), Real income (YH,YF) )....
In a Short Run Policy Analysis:
a) Suppose there is a temporary increase in the Foreign money supply
b) investors expect the exchange rate to depreciate(EeH/F).
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