Solved: Imagine that domestic and foreign currency bonds are, Microeconomics

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Imagine that domestic and foreign currency bonds are

Imagine that domestic and foreign currency bonds are imperfect substitutes and that investors suddenly shift their demand toward foreign currency bonds, raising the risk premium on domestic assets. Which exchange rate regime minimizes the effect on output-?xed or ?oating?

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Microeconomics: Imagine that domestic and foreign currency bonds are

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Microeconomics: Imagine that domestic and foreign currency bonds are

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