Why does devaluing the domestic currency have an expansionaryeffect on the economy? Does this expansionary effect take

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Why does devaluing the domestic currency have an expansionaryeffect on the economy? Does this expansionary effect take place if capital is perfectly immobile? Why or why not?

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International Economics

ISBN: 9780078021671

8th Edition

Authors: Dennis Appleyard, Alfred Field

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Question Posted: Dec 02, 2015 04:31 AM

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Why does devaluing the domestic currency have an expansionaryeffect on the economy? Does this expansionary effect take

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A devaluation of the currency leads to an expansion of exports and a c...View the full answer

International Economics

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