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M/MRHXH) M15: II- (Rer) , answer the questions below. 1. Using the equation of the monetary approach model E = 1.a. Home interest rate RH
M/MRHXH) M15: II- (Rer) , answer the questions below. 1. Using the equation of the monetary approach model E = 1.a. Home interest rate RH fell. What would the monetary approach predict on Home currency CH3 Depreciation, Appreciate, or No change? 1.b. Foreign output Yr rose. What would the monetary approach predict on Home currency cal Depreciation, Appreciate, or No change? 1.c. Foreign interest rate RF rose. Based on the monetary approach, answer how should Home central bank change Home nominal money supply to keep the exchange rate constant Increase, Decrease, or No change
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