How would you expect the unemployment rate to be affected

Reference no: EM133336956

Question a. If, to support its currency fix, the oil-exporting country also used monetary policy, in which direction would it move its interest rate to counter this new pressure on its currency resulting from the fall in global oil prices?

Question b. How would you expect the unemployment rate to be affected in the oil-exporting country as a result of the central bank activity you indicated in (b) above? Explain.

Reference no: EM133336956

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