According to the simple monetary model, money is growing at 5% in the United States and 6% in the United Kingdom, while real GDP is rising at 3% in the United States and at 5% in the United Kingdom. What will this do to the exchange rate?

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Q: based on the table above, is the exchange rate of dollars to pounds fixed or flexible? Explain

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Q: Discuss how expectation influences exchange rates. Thank you!

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Q: WHAT IS THE IMPORTANCE OF EXCHANGE RATE IN OUR ECONOMY

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Q: what is volatility in exchange rate ?

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Q: Describe the fixed exchange rate monetary system.

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Q: Is expansive monetary policy possible, if a country has a floating exchange rate

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Q: How does covered interest arbitrage affect the exchange rates

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