Explain the short-run impact upon net exports and GDP of the following in the multiplier model, using
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a. An increase in investment (I) of $100 billion
b. A decrease in government purchases ( G) of $50 billion
c. An increase in foreign output which increased exports by $10 billion
d. A depreciation of the exchange rate that raised exports by $30 billion and lowered imports by $20 billion at every level of GDP
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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