Suppose that the U.S. is considering devaluing its dollar against a foreign currency to improve the trade

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Suppose that the U.S. is considering devaluing its dollar against a foreign currency to improve the trade balance. Use the absorption approach to explain how the U.S. can improve its trade balance from the currency devaluation, if the country is currently operating in the full-employment level of output.
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International Money And Finance

ISBN: 9780323906210

10th Edition

Authors: Michael Melvin, Stefan C. Norrbin

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