Suppose you read that prospects for stronger future economic growth have led the dollar to strengthen and
Question:
a. What effect does the strengthened dollar have on the IS curve?
b. What effect does the increase in stock prices have on the IS curve?
c. What is the combined effect of these two events on the IS curve?
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a A more expensive dollar will result in fewer US exports and more US imports everyt...View the full answer
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Related Book For 
The Economics of Money Banking and Financial Markets
ISBN: 978-0133836790
11th edition
Authors: Frederic S. Mishkin
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