Explain why a devaluation improves the current account in this chapters model.

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Explain why a devaluation improves the current account in this chapter’s model.

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International Economics Theory and Policy

ISBN: 978-0273754206

9th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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Question Posted: Oct 24, 2012 11:46 PM

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Explain why a devaluation improves the current account in this chapters model.

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As shown in Figure a devaluation causes the AA curve to shift to A A whi...View the full answer

International Economics Theory and Policy

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