The Pugelovian government has just devalued the Pugelovian currency by 10 percent. For each of the following,
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a. People are very fixed in their habits. Both Pugelovian importers and foreign buyers of Pugelovian exports buy the same physical volumes no matter what.
b. Pugelovian firms keep the Pugelovian pnut prices of Pugelovian exports constant, and foreign firms keep the foreign-currency prices of exports to Pugelovia constant?
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a The increase in foreign demand for the countrys exports shifts the IS curve to the right to IS in ...View the full answer
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