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Please show the model and explain the quantity theory of money and how changes in the money supply can affect the FX rate. If the

  1. Please show the model and explain the quantity theory of money and how changes in the money supply can affect the FX rate.

If the UK money supply rose by 5% and their real GDP was flat, that is, had no growth, while for the US, the money supply grew by 3% and real GDP grew by 3%, what would happen to inflation in the UK, the US and the US $ price of the UK pound.

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