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Floating exchange rates

Assume that economic growth is slower in the United States than in its trading partners. Given a system of floating exchange rates, will the impact of this growth differential be for the United States with respect to exports and the value of the dollar? Explain.

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The partner countries are growing at a much faster rate that means the aggregate demand in those countries is higher. Due to high demand ...

Solution Summary

Increased exports are contextualized.

$2.19