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Under political pressure the government of Home has to loosen its immigration policy by increasing the number of immigrants the country received each year. As
Under political pressure the government of Home has to loosen its immigration policy by increasing the number of immigrants the country received each year. As a result, the labour force in Home increases. According to the generalized model of long-run exchange rate, what happen to the domestic price level, the DC/FC real exchange rate, and the DC/FC nominal exchange rate? Explain
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