Does the change in the exchange rate act to increase the


Suppose Americans go on a "buy American" campaign that reduces imports. Use a supply and demand model of the foreign exchange market to show how this campaign would affect the value of the dollar. Does the change in the exchange rate act to increase the reduction in imports or does it partially offset the initial reduction in imports? Explain.

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Econometrics: Does the change in the exchange rate act to increase the
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