c) In an open economy show the contrast between long-run price determination in a fixed vsfloating exchange rate regime.d) In a floating exchange rate regime with sticky prices, show the short-run and long-runimpacts of a temporary rise in the target inflation rate.

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c) In an open economy show the contrast between long-run price determination in a fixed vs floating exchange rate regime.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter6: Managing In The Global Economy

Section: Chapter Questions

Problem 12E

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Question

c) In an open economy show the contrast between long-run price determination in a fixed vs
floating exchange rate regime.
d) In a floating exchange rate regime with sticky prices, show the short-run and long-run
impacts of a temporary rise in the target inflation rate.

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