Solved: What happens to the exchange rate of the norwegian krone, Microeconomics

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What happens to the exchange rate of the norwegian krone

Suppose that soon after Norway pegs to the euro, EMU bene?ts from a favorable shift in the world demand for non-Norwegian EMU exports. What happens to the exchange rate of the Norwegian krone against noneuro currencies? How is Norway affected? How does the size of this effect depend on the volume of trade between Norway and the euro zone economies?

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Microeconomics: What happens to the exchange rate of the norwegian krone

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