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    Principles of Economics Study Set 12
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    Exam 24: The Economic Fluctuations Model
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    Suppose, Because of a Foreign Crisis, the Foreign Exchange Value
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Suppose, Because of a Foreign Crisis, the Foreign Exchange Value

Question 154

Question 154

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Suppose, because of a foreign crisis, the foreign exchange value of the dollar increases. Use the analysis developed in the text to show how the AD curve will be affected.

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A stronger dollar will result in an incr...

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