Assume that policy makers are pursuing a fixed exchange, Business Economics

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Assume that policy makers are pursuing a fixed exchange

Assume that policy makers are pursuing a fixed exchange rate regime. Now suppose that the foreign interest rate falls. Discuss what policy makers must do to maintain the pegged exchange rate. Also discuss what effect this will have on domestic output and net exports.

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Business Economics: Assume that policy makers are pursuing a fixed exchange

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Business Economics: Assume that policy makers are pursuing a fixed exchange

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