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Explain the Exchange rate system in western world
The most common exchange rate system in western world during previous century was the fixed exchange rate system. Up to 1930s, most currencies were pegged to price of gold (the gold standard). After 2nd World War a new system was created, so-called Bretton Woods system, where every currency in the system was pegged to US dollar (USD). After collapse of this system in 1970s, many currencies, for instance, USD, have been flexible.
Consider a nation in which the volume of goods and services is growing by 5 percent per year. If a country's economic size is growing faster than the rest of the world, then
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money multiplier
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Describe dynamic multiplier
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what is it?
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