Impact of our domestic product and income increase

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Reference no: EM131213833

Explain the impact of each of the following on our country's exports and imports:

a. Our domestic product and income increase.

b. Foreign domestic product and income decrease.

c. Our price level increases by 5 percent, with no change in the (nominal) exchangerate value of our currency and no change in the foreign price level.

d. Our price level increases by 5 percent, the foreign price level increases by 10 percent, and there is no change in the (nominal) exchange-rate value of our currency.

Reference no: EM131213833

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