Explain with the help of diagram a) how increase in US domestic money supply in short run can affect interest rate and exchange rate?[10]b) how decrease in EU income can affect Euro interest rate and exchange rate? [10]

Principles of Economics, 7th Edition (MindTap Course List)
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ISBN:9781285165875
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Chapter32: A Macroeconomic Theory Of The Open Economy
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Explain with the help of diagram a) how increase in US domestic money supply in short run can affect interest rate and exchange rate?[10]b) how decrease in EU income can affect Euro interest rate and exchange rate? [10]

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