Monetary expansion in the usa on the canadian gdp

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Reference no: EM132601049

Suppose the Federal Reserve (the USA central bank) increases the money supply in the USA. What would be the effect of this monetary expansion in the USA on the Canadian GDP? Specifically, explain what happens to the Canadian net exports (hint: there is more than one way that the US monetary expansion influences the Canadian net exports, and you should try to describe & explain the overall impact). Explain in detail with examples.

Reference no: EM132601049

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