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For a number of years, the U.S. dollar was losing value relative to other currencies around the world.

A. Explain what sort of monetary policy would help to increase the value of the dollar and why it would have this effect. What effects does this policy have on unemployment and the merchandise trade balance?

B. Describe a fiscal policy that would help increase the value of the dollar and why it would have this effect. What effects does this policy have on unemployment and the merchandise trade balance?

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