Using fundamental equations from general monetary

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Using the fundamental equations from the general monetary approach, describe how each of the following will affect the home and foreign price level, real money balances, and the exchange rate, EH/F . Also, state whether the home currency appreciates or depreciates for each.

(a) An decrease in the foreign money supply

(b) An decrease in the home real income

(c) An decrease in the foreign nominal interest rate

Reference no: EM13898815

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