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Question attached If domestic interest rates are at 5.35%, and foreign returns are bringing 6.25%. According to the asset approach, if the expected future exchange

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If domestic interest rates are at 5.35%, and foreign returns are bringing 6.25%. According to the asset approach, if the expected future exchange rate is 3.5 dollars per unit of foreign currency, what can we say about the current spot rate if UIP holds?What are the long run impacts of temporary fiscal contraction under fixed exchange rates on Y, i, E, and the TB? Explain

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