11-03-15-Rise in Foreign Interest Rates-Intermediate run

11-03-15-Rise in Foreign Interest Rates-Intermediate run -...

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Rise In Foreign Real Rates Of Interest-Intermediate Run March 15, 2011
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CA STIG p STIG r=.06 CA pf=0,e=.4 0 Q 1 LM ms=5,r=.06 Economy Starts In Equilibrium with r = .06
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CA STIG p STIG’ r=.07 CA pf=0,e=.4 0 Q 1 LM’ ms=5,r=.07 Suddenly r = .07, Which Shifts STIG and LM LM ms=5,r=.06 STIG r=.06
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CA STIG p STIG’ r=.07 CA pf=0,e=.4 0 Q 1 LM’ ms=5,r=.07 This Shows The Triangle Of Disequilibrium
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CA STIG p STIG’ r=.07 CA pf=0,e=.4 0 Q 1 LM’ ms=5,r=.07 The Elimination Of The Triangle Of Disequilibrium Under Fixed Exchange Rates LM” ms=4.965,r=.07 .99 7.5
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CA STIG p STIG’ r=.07 CA pf=0,e=.4 0 Q 1 The New Equilibrium Under Fixed Exchange Rates LM” ms=4.965,r=.07 7. 5 .99
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CA STIG p STIG’ r=.07 CA
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Unformatted text preview: pf=0,e=.4 Q 1 LM ms=5,r=.07 The Triangle Of Disequilibrium Again CA STIG p STIG r=.07 CA pf=0,e=.4 Q 1 LM ms=5,r=.07 The Elimination Of The Triangle Of Disequilibrium Under Flexible Exchange Rates CA pf=0,e=.4467 1.025 CA STIG p STIG r=.07 Q 1 LM ms=5,r=.07 The New Equilibrium Under Flexible Exchange Rates CA pf=0,e=.4467 1.025 16.25 CA STIG p STIG r=.07 CA pf=0,e=.4 Q 1 LM ms=5,r=.07 Comparison Of Fixed And Flexible Exchange Rate Responses CA pf=0,e=.4467 1.025 Q flex Q fi x .99 7.5 16.25...
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This note was uploaded on 07/16/2011 for the course ECON 2154 taught by Professor Boyer during the Winter '10 term at UWO.

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11-03-15-Rise in Foreign Interest Rates-Intermediate run -...

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