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Suppose the supply of dollars increases by 600 billion at each exchange rate. describe if the increase in supply results from a large purchase by the Chinese of of a new American-made airplane or a large purchase by Americans of new lower priced Chinese-made high definition televisions. find out the new supply of dollars at each exchange rate and graph the new supply curve. What is the new equilibrium exchange rate given the original demand for dollars.

Microeconomics, Economics

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