Effect of an increase in the foreign interest rate


Analyze the effect of an increase in the foreign interest rate R* in the short run. Under which type of exchange rate is there a smaller effect on ouput- fixed or floating? Use the DD-AA model to explain your answer

Request for Solution File

Ask an Expert for Answer!!
Macroeconomics: Effect of an increase in the foreign interest rate
Reference No:- TGS065551

Expected delivery within 24 Hours