International Economics
16th Edition
ISBN: 9781305887633
Author: Robert Carbaugh
Publisher: Cengage Learning
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What does an increase in international reserves mean
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- Why does the demand for foreign currency falls when its price risesarrow_forwardExplain why a country with fixed exchange rate and open financial markets has to give up its monetary policy independence?arrow_forwardIf domestic interest rate is higher than foreign countries interest rates, then there will be _____________ ."A) a capital outflow and supply of domestic currency will increase. B)a capital outflow and demand for domestic currency will increase.C) a capital inflow and demand for domestic currency will increase.D) a capital inflow and demand for domestic currency will fall.arrow_forward
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