The quantity of imports and exports in denmark

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Suppose that production of very cool cars in Denmark (a small open economy) increases exports in Denmark. How does this event affect the Danish NX curve, the Danish real exchange rate, the Danish nominal exchange rate (the Danish kroner to be more precise), the quantity of imports and exports in Denmark, and the openness index in Denmark? Provide intuition for the effects on each of the variables

Reference no: EM131161961

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