A country has a floating exchange rate government spending, Ask an Expert

Finance

A country has a floating exchange rate. Government spending now increases in an effort to reduce unemployment.

What is the effect of this policy change on the exchange-rate value of the country's currency?

Under what circumstances does the exchange-rate change reduce the expansionary effect of the fiscal change?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91969907

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