Problem
Currency crises and the demand for dollars: Suppose there is a currency crisis in the rest of the world, leading to an increase in demand for U.S. dollars (a "flight to safety"). Use the AS/AD framework to explain the effects of this shock on the U.S. economy. Be sure to explain carefully how and why the shock enters the AS/AD model.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.