What other factor is affected by increased economic growth

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National income effects. Analysts commonly attribute the appreciation of a currency to expecta- tions that economic conditions will strengthen. Yet, this chapter suggests that when other factors are held constant, increased national income could increase imports and cause the local currency to weaken. In reality, other factors are not constant. What other factor is likely to be affected by increased economic growth and could place upward pressure on the value of the local currency?

Reference no: EM13936299

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