Question: a. Critically evaluate how the international trade flows should initially adjust in response to the changes in inflation (holding exchange rates constant). Critically explain how

a. Critically evaluate how the international trade flows should initially adjust

a. Critically evaluate how the international trade flows should initially adjust in response to the changes in inflation (holding exchange rates constant). Critically explain how the international capital flows should adjust in response to the changes in interest rates (holding exchange rates constant)

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