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The following questions concern the supply and demand to exchange Korean won for U.S. dollars. The exchange rate is denoted as E$/Won. For each question
The following questions concern the supply and demand to exchange Korean won for U.S. dollars. The exchange rate is denoted as E$/Won. For each question state whether the supply of won, demand for won or both curves will shift, and in which direction. a. Korean tax cuts increase Korean GDP b. The Korean central bank raises interest rates c. Kimchi (a Korean export), is discovered to be a miracle food that slows down the aging process. d. Kia (a Korean company) introduces a new electric car that sells well in the U.S. e. Inflation rises in the U.S. but not in Korea. f. Taylor Swift holds a concert in Korea that is sold out (assume that the concert attendees are all Korean and that Taylor Swift will want to convert the concert proceeds into dollars) g. Samsung (a Korean company) decides to build a new factory in the U.S
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