How does a restrictive monetary policy abroad affect, International Economics

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How does a restrictive monetary policy abroad affect

Problem

1. If a contractionary monetary policy is expected to be temporary, what happens to the effectiveness of that policy under flexible exchange rates? Why?

2. How does a restrictive monetary policy abroad affect the domestic economy under a float? How does this mechanism operate?

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.

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International Economics: How does a restrictive monetary policy abroad affect

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