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For each of the following situations, use the IS-LM-FX model to illustrate the effects of the shock and the policy response. For each case, state the e§ect of the shock on the following variables (increase, decrease, no change, or ambiguous): Y, i, E, C, I, and TB. Assume the government allows the exchange rate to áoat and makes no policy response. To get full credit each of your answers must be supported by the appropriate IS-LM-FX graphs.
1. Foreign output decreases.
2. Investors expect a depreciation of the home currency.
3. Government spending increases.
Determine what evidence do we have that the Central Limit Theorem is true and explain why do so many of life's events share the same characteristics with Central Limit Theorem?
i. leslie igles is being sent to ireland as the new manager of a local subsidiary of a u.s. firm. she has a
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Sometimes when the citrus crop freezes in California or Flordia, the media report that even though there are fewer fruit available for consumers, "the total value of the crop has increased," or words to that effect.
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analyze the effects of each of the shocks below using the three diagrams i have been using in class the is-lm diagram
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If the European euro were to depreciate relative to the United State dollar in the foreign exchange market, would it be easier of harder for the French to sell their wine in the U.S.?
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