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Draw a market where the dollar is in equilibrium

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Reference no: EM132787214

International Financial Management

1.) The Dollar and the Pound.

Problem a.) Draw a market where the dollar is in equilibrium. Then assume there is a US income tax hike.

Problem b.) Draw a market where the pound is in equilibrium. Then assume there is a UK income tax cut.

Problem c.) Describe the market conditions in each case (excess demand/excess supply).

Reference no: EM132787214

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