Macroeconomics (7th Edition)
Macroeconomics (7th Edition)
7th Edition
ISBN: 9780134738314
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 18, Problem 18.2.4RQ
To determine

The factors that cause the shift of demand and supply curve in foreign exchange market.

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Please explain how an increase in incomes in the United States will affect equilibrium in the foreign exchange market?
What will happen to a country that fixes the price of foreign exchange below equilibrium?
In the foreign exchange market, how does a change in expected future U.S. exchange rate affect the demand for dollars?
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