Question: How does a deficit or a surplus in the nation's balance of payments arise according to the monetary approach? Why do nations lose control over

How does a deficit or a surplus in the nation's balance of payments arise according to the monetary approach? Why do nations lose control over their money supply in the long run under fixed exchange rates?

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The equation for demand for money is M d kPY The quantity of nominal money balances is M d Desired r... View full answer

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