Consider an open economy with a floating exchange rate. Theaggregate demand curve of the economy is: AD(Y, ED/F) = d+ 0.

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Consider an open economy with a floating exchange rate. Theaggregate demand curve of the economy is: AD(Y, ED/F) = d+ 0.

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Consider An Open Economy With A Floating Exchange Rate Theaggregate Demand Curve Of The Economy Is Ad Y Ed F D 0 1
Consider An Open Economy With A Floating Exchange Rate Theaggregate Demand Curve Of The Economy Is Ad Y Ed F D 0 1 (220.74 KiB) Viewed 52 times
Consider an open economy with a floating exchange rate. Theaggregate demand curve of the economy is: AD(Y, ED/F) = d+ 0.1Y√EDIF where d> 0 is a constant. ** Part a (10 marks) Find the DD curve (a relation between EDIF and Y) in terms of the parameter d. ** Part b (10 marks) Suppose that d increases. How does the DD curve move (shifts up or shifts down)?
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