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please answer the top and part b lo answer this question, use the fundamental equation from the general monetary approach Egresaka Pernim Banglades a la
please answer the top and part b
lo answer this question, use the fundamental equation from the general monetary approach Egresaka Pernim Banglades a la sevadine Cisnadine Santa Mariales Columns inter How will a decrease in the nominal interest rate in Bangladesh affect the price levels in Sweden and Bangladesh, Swedish real money balances, and the exchange rate Emte? Ausume that the expected exchange rate is unchanged. (10 points) Circle the correct answer. Due to a decrease in the nominal interest rate in Bangladesh- Swedish price level, Psweden increases decreases stays the same Bangladeshi price level, Pangladesh 1 increases il decreases stays the same Swedish real money balance increases decreases istays the same Ekon/Tale increases il decreases a) stays the same Swedish currency, Krona Appreciates Depreciates Economic Intuition behind your answer. b. According to the article 'U.S. Demand Drives Global Recovery -- Americans are buying buoyed by savings and federal stimulus during pandemic Wall Street Journal June 29, 2021 cow is the demand boom in the US, helping economic recovery in China Frand and Germany."Refer to the theoryies) discussed in class that links the US demand boom with the economic every in other countries. 15 points) lo answer this question, use the fundamental equation from the general monetary approach Egresaka Pernim Banglades a la sevadine Cisnadine Santa Mariales Columns inter How will a decrease in the nominal interest rate in Bangladesh affect the price levels in Sweden and Bangladesh, Swedish real money balances, and the exchange rate Emte? Ausume that the expected exchange rate is unchanged. (10 points) Circle the correct answer. Due to a decrease in the nominal interest rate in Bangladesh- Swedish price level, Psweden increases decreases stays the same Bangladeshi price level, Pangladesh 1 increases il decreases stays the same Swedish real money balance increases decreases istays the same Ekon/Tale increases il decreases a) stays the same Swedish currency, Krona Appreciates Depreciates Economic Intuition behind your answer. b. According to the article 'U.S. Demand Drives Global Recovery -- Americans are buying buoyed by savings and federal stimulus during pandemic Wall Street Journal June 29, 2021 cow is the demand boom in the US, helping economic recovery in China Frand and Germany."Refer to the theoryies) discussed in class that links the US demand boom with the economic every in other countries. 15 points) Step by Step Solution
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