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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