Question: For the Dornbusch model given in table 13.2 (model 13.2), show that (i) s s = 1 uv (p p) (ii) hence

For the Dornbusch model given in table 13.2 (model 13.2), show that

(i) s − s = − 1 uv

(p − p)

(ii) hence show p˙ = −a h +

h uv

+

d u

(p − p)

and

λ = a h +

h uv

+

d u

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