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    Exam 17: Output and the Exchange Rate in the Short Run
  5. Question
    Please Discuss the Volume Effect and the Value Effect in Regards
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Please Discuss the Volume Effect and the Value Effect in Regards

Question 18

Question 18

Essay

Please discuss the volume effect and the value effect in regards to how the current account will move given a change in the real exchange rate.

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The volume effect takes place when consu...

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