Suppose there is a decrease in real money demand [L(R,Y)] in the U.S and a decrease in nominal money supply (M*) in Europe. Using the
Suppose there is a decrease in real money demand [L(R,Y)] in the U.S and a decrease in nominal money supply (M*) in Europe. Using the short-run model of exchange rate determination, illustrate and explain what happens to the E$/ exchange rate in the short run.
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Authors: Charles I. Jones
3rd edition
978-0393123944, 393123944, 393923908, 978-0393923902
