The Net Exports Effect

Anonymous
timer Asked: Jul 14th, 2014
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Question Description

Using the "net exports effect" discuss how the following economic variables change during an economic expansion:

  • The balance of payments
  • The rate of interest
  • The value of the dollar
discuss the case in the context of both a flexible exchange rate and a fixed exchange rate

Tutor Answer

Nts T
School: Cornell University

The    net exports effect    is the impact on a country   s total spending caused by an inverse relationship between the price level and the net exports of an economy  using this principle  discuss how the following economic variables change during an economic expansion   the balance of payments the rate of interest the value of the dollar in your answer  also discuss the case in the context of both a flexible exchange rate and a fixed exchange rate.

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Anonymous
awesome work thanks

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