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Chako Chako
wrote...
Posts: 2948
8 years ago
Assume the output market adjusts more rapidly than the asset market. A point of disequilibrium that is below both AA and DD will therefore initially result in
A) a decrease in output.
B) an appreciation of the home currency.
C) a contraction of the money supply.
D) a depreciation of the home currency.
E) an increase in output.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
Read 158 times
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wrote...
8 years ago
A
Chako Author
wrote...
8 years ago
Makes a lot of sense, and you're right.. I appreciate the input
wrote...
8 years ago
Happy to help you!
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