List the effects of increase of us-d exchange rate on a-d
Problem
Why is the US $ exchange rate is so volatile but still very high and steadily increasing against other major currencies? List the effects of increase of US$ exchange rate on AD and other economic variables for the US economy.
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Why increase in budget deficit may also increase trade deficit for the US economy?
List the effects of increase of US$ exchange rate on AD and other economic variables for the US economy.
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According to rational expectations theory, how will this policy affect the Fed's ability to move the real economy (e.g., the unemployment rate)?
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