What will happen to the value of the pound in the short run

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Briefly explain what would happen and why:

Question a. Suppose that price levels in Indonesia rise by 20% relative to price levels in the Eurozone countries and that the purchasing power parity theory holds. How would this affect the value of the Indonesian rupiah relative to the euro?

Question b. If the British central bank prints money to reduce unemployment, what will happen to the value of the pound in the short run and the long run?

Question c. Due to increasing wealth, what would happen to the value of the Singapore dollar if Singaporeans significantly increased their consumption of foreign goods and services as compared to locally produced goods and services?

Reference no: EM132519763

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