How this campaign would affect the value of the dollar

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Reference no: EM131141991

Suppose Americans go on a "buy American" campaign that reduces imports. Use a supply and demand model of the foreign exchange market to show how this campaign would affect the value of the dollar. Does the change in the exchange rate act to increase the reduction in imports or does it partially offset the initial reduction in imports? Explain.

Reference no: EM131141991

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