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In a world of two countries, Country A has a higher interest rate than Country B, but Country A's currency is under pressure to
In a world of two countries, Country A has a higher interest rate than Country B, but Country A's currency is under pressure to devalue (depreciate). (1) What theory has been "violated" by this reality? (2) what should you call for Country A with regard to this unusual situation? (3) what would you describe in an IS-LM-BP framework?
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