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use fundamental equation from monetary approach. Describe how each of the following affect the home and foreign price level, real money balances, nominal exchange rate

use fundamental equation from monetary approach. Describe how each of the following affect the home and foreign price level, real money balances, nominal exchange rate (e$, euro), Describe if the home currency appreciates or depreciates.

A) A decrease in the home real income

B) A decrease in the foreign nominal interest rate

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