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Expected return of exchange rate

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In the Long run, a real drop in real GDP. How would it impact the expected return of the exchange rate. Please explain with a diagram and shifts. Lets say the expected interest rate of the Home currency is on the Y axis. and and exchange rate on is on the x. Feel free to use any currency pair. dollar/euro, yen/euro. Explanation of the of the long run is what I would like assistance.

Reference no: EM133377435

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