Consider the relationship between exchange-rate changes, aggregate demand, and monetary policy. a. Suppose the world price for raw materials rises, due to a growing demand for these products. On the AD/AS diagram on the right show the likely effect of this on Canadian aggregate demand, given that Canada is a net exporter of raw materials and assuming, initially, no change in the exchange rate. Use the three-point curve drawing tool to draw the new position of the AD curve. Carefully follow the instructions above, and only draw the required object. Price Level Figure 1 Real GDP AS AD ✓

Consider the relationship between exchange-rate changes, aggregate demand, and monetary policy. a. Suppose the world price for raw materials rises, due to a growing demand for these products. On the AD/AS diagram on the right show the likely effect of this on Canadian aggregate demand, given that Canada is a net exporter of raw materials and assuming, initially, no change in the exchange rate. Use the three-point curve drawing tool to draw the new position of the AD curve. Carefully follow the instructions above, and only draw the required object. Price Level Figure 1 Real GDP AS AD ✓

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please answer fast i give you upvote.
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COURSE: MACROECONOMIC - MUNDELL-FLEMING MODEL Until mid-2005, the Central Bank of China established a fixed exchange rate between its currency (yuan) and the dollar. The fixed exchange rate regime was reintroduced during the Great Recession between July 2008 and June 2010.After that date, the Chinese central bank established fluctuation bands for the yuan allowing it to move within these bands. However, the US has accused China on several occasions of taking actions to devalue its currency against the dollar.EXPLAIN and GRAPH with an open economy model with a fixed exchange rate (MUNDELL-FLEMING MODEL) the different chain effects that are generated when a country devalues its currency. From your results DETERMINE why it would be convenient for China to devalue its currency with respect to the dollar and in what way USA is harmed. Hint: according with statement on first paragrah, explain what's happens if devaluation process is defined and by Mundell-Fleming Model explain differents…