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    Principles of Economics Study Set 2
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    Exam 32: A Macroeconomic Theory of the Open Economy
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    How Does an Increase in the Money Supply Affect the Nominal
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How Does an Increase in the Money Supply Affect the Nominal

Question 4

Question 4

Essay

How does an increase in the money supply affect the nominal exchange rate if the real exchange rate is not affected by the monetary shock?

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The domestic price level will ...

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