How the factors affect the dollar exchange rate

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Reference no: EM132172623

Question: Explain how the following factors affect the dollar's exchange rate under a system of market determined exchange rates:

(a) a rise in the U.s. price level, with the foreign price level held constant;

(b) tariffs and quotas placed on u.s. imports;

(d) rising productivity in the United States relative to other countries;

(e) rising real interest rates overseas, relative to U.S. rates;

(f) an increase in U.S. money growth;

(g) an increase in U.S. money demand.

Reference no: EM132172623

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