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This question combines quantity theory of money and AD curve. Suppose there are two countries: the U.K. and the U.S. Here is the table of
This question combines quantity theory of money and AD curve. Suppose there are two countries: the U.K. and the U.S. Here is the table of money supply (M) and output (Y) of year 2020 and 2021 for both countries. a. Assuming V is fixed, calculate the inflation rates of each country. b. Based on the answers in part (a), what can we say above the net export of each country (increase or decrease)? Explain. c. Based on the answers in part (b), which direction the AD curve of each country shift
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