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If the Fed started printing a large quantity of US dollars, what would happen to the value of the US dollar on the foreign currency
If the Fed started printing a large quantity of US dollars, what would happen to the value of the US dollar on the foreign currency exchange market? Why? Explain it by referring to the economic models. |
What is capital flight? When a country experiences capital flight, what is the effect on its interest rate and exchange rate? |
Define the nominal exchange rate and the real exchange rate. Which exchange rate is used to determine the value of a currency in terms of the currency of another country? |
If the value of the dollar appreciates on the foreign currency exchange markets, what is the impact on imports and exports and on net exports? |
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