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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
- 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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