Problem
1. What factors are likely to determine leadership within a fixed exchangerate system?
2. What meaning or meanings might be attached to the notion of the equilibrium exchange rate?
3. Show on a Mundell-Fleming diagram the impact of:
(a) a country revaluing its currency within a fixed exchange rate system;
(b) a decision to widen the exchange rate bands within a fixed exchange rate system.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.