consider the us home and the euro area foreign1, International Economics

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consider the us home and the euro area foreign1

Consider the U.S. (home) and the euro area (foreign).

1. What happens in the home money and FX markets if there is a temporary contraction in the home money supply?

2. What happens in the home money and FX markets if there is a temporary contraction in the foreign money supply?

3. What happens in the short run and long run if there is a permanent decrease in the home money supply?

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International Economics: consider the us home and the euro area foreign1

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International Economics: consider the us home and the euro area foreign1

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