Illustrate what means do they use to hedge against exchange

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Reference no: EM1361576

In a private closed economy, the marginal propensity to save is 0.25, consumption equals income at $120 billion, and the level of investment is $40 billion. what is the equilibrium level of income. MNE's with multiple foreign operations, consider any two of those operations and the contribution they are making to the parent firm's profits. Illustrate what means do they use to hedge against exchange rate risk.

 

Reference no: EM1361576

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