Adjustments in the currency exchange rates

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Reference no: EM13892079

1) Theoretically, if there is free trade, exports will tend to equal imports through adjustments in the currency exchange rates. Demonstrate this adjustment process graphically and verbally.

2) Pre-Keynesian economics did not focus greatly upon the problems of high levels of unemployment, recession or depression. Why? How did Keynes explain these phenomena? What was Keynes' solution?

Reference no: EM13892079

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