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Explain the linkage between exchange rates

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Question

Suppose that a new industry is created in the US that makes a new product that will be very popular with consumers across the world. Explain in detail using words and graphs what is likely to happen to the (US dollar / euro) exchange rate. Explain the linkage between exchange rates now, different interest rates in different countries, and exchange rates in the future.

Reference no: EM133239422

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