Problem
1. What is the short-run effect on the exchange rate of an increase in domestic real GNP, given expectations about future exchange rates?
2. Does our discussion of money's usefulness as a medium of exchange and unit of account suggest reasons why some currencies become vehicle currencies for foreign exchange transactions?
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.