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Why are Brazil and Dominica upset

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Question - The US expansionary monetary policy has been the subject of a lot of criticism in other countries. For example, Brazil, which has a relatively flexible exchange rate against the US dollar, has complained, and so has Dominica, which has a fixed exchange rate. Use the DD-AA model to compare and contrast the effects of recent US monetary expansion on Brazil and Dominica. Why are Brazil and Dominica upset? How do the effects differ in the two districts? What could Brazil and Dominica do in response?

Reference no: EM133101100

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