Solved: How would you draw the dd-aa diagram when accounts response, International Economics

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How would you draw the dd-aa diagram when accounts response

Problem

How would you draw the DD-AA diagram when the current account's response to exchange rate changes follows a J-curve? Use this modified diagram to examine the effects of temporary and permanent changes in monetary and fiscal policy.

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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