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    Floating exchange rates

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    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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    https://brainmass.com/economics/exchange-rates/floating-exchange-rates-59406

    Solution Preview

    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.

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