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dcooper78 dcooper78
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A month ago
Explain why a target exchange rate announcement has little effect on the exchange rate in the foreign exchange market
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Macroeconomics


Edition: 3rd
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ydnam23ydnam23
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More solutions for this book are available here
When the exchange rate is pegged at a higher value than what the equilibrium exchange rate would be in the foreign exchange market, the excess supply of dollars would drive the exchange rate down toward the equilibrium value, absent central bank intervention in the market.

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