Question: In a perfectly floating exchange rate regime, use the monetary approach to the exchange rate to explain the effect on the dollar price of a

In a perfectly floating exchange rate regime, use the monetary approach to the exchange rate to explain the effect on the dollar price of a Swiss franc ($/SFr) of the following scenarios:
a. The output in the U.S. decreases by 3%.
b. The price level in Switzerland decreases by 2%.

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