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Skectch the fundamental analysis of the supply and demand curve for the British pound in terms of dollars. (The quantity of pounds on the horizontal axis and the US dollars per pound on the vertical axis - see 33-2.) What will happen to the exchange rate for each of the following events:a) The UK economy boomsb) UK prices rise relative to world pricesc) UK interest rates rise relative to world interest rates
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Suppose which equilibrium income is 3200 also the multiplier is 2.38. Equilibrium income would rise to 3400 if planned investment.
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John Smith expected income in period two is unchanged. Illustrate graphically explain how this job loss affects John's consumption in periods one and two.
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