Macroeconomics
10th Edition
ISBN: 9781319105990
Author: Mankiw, N. Gregory.
Publisher: Worth Publishers,
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Question
Chapter 13, Problem 4PA
(a)
To determine
The causes that lead to the rise in the world interest rate.
(b)
To determine
The impact of floating exchange rate on income, exchange rate, and trade balance when the world interest rate increases.
(c)
To determine
The impact of fixed exchange rate on income, exchange rate, and trade balance when the world interest rate increases.
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