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If the value of the euro goes from $1.05 US dollars to $1.35 US dollars, would you expect Germany’s economy (one of the countries that use the euro) to expand or contract, all other things being equal? Why? Don’t forget to include how the economy would expand or contract- would exports and imports increase or decrease, is money flowing into or out of the country overall, what would happen to GDP and unemployment, etc. using this same information, would you expect the United States economy to expand or contract, all other things being equal? Why?

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