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MACRO - The Net Exports Effect
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MACRO - The Net Exports Effect 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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MACRO - The Net Exports Effect
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  • Submitted On 23 Sep, 2015 05:25:22
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The Net Exports Effects, also known as foreign trade multiplier can be defined as the amount by which total national income of a particular nation will be raised by ...
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