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Unformatted text preview: services or US assets. Supply of US foreign exchange Lately Demand have gone down and supply gone up Real exchange rate is the price of the avg. domestic goods or service relative to the price of the average foreign good or service when prizes are expressed in term of a common currency Real exchange rate is the price of a domestic good when measured in foreign currency devided by the price in the foreign good. Real appriciation is an increase in relative price of domestic goods in terms of foreign goods. äåö...
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This note was uploaded on 10/21/2010 for the course ECON 1530 taught by Professor Ohly during the Spring '10 term at Dartmouth.
- Spring '10