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Analyzing the exchange rate system and short run trends in the currency markets.

Assume there is balance on current account surplus and underemployment equilibrium in the real and monetary sides of the domestic economy. Describe the short-run movement as per equilibrium in the present marketplace in a flexible exchange system. How is your answer different if the government pursues a Keynesian full-employment policy of deficit spending coupled with targeting the interest rate through Federal Reserve open market operations?

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M922434

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