This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: will increase NX in Europe Solution to Quick Quiz 10: © Hadi Salehi Esfahani • How would the US price increase affect: 1. The IS curve in Europe?-Shifts to the right 2. The LM curve in Europe?-No shift 3. Europe's nominal interest rate and aggregate real income (please use the IS-LM diagram)?-Both go up. 4. The nominal exchange rate (dollars per euro)?-Also goes up! Solution to Quick Quiz 10:...
View Full Document
This note was uploaded on 01/27/2012 for the course ECON 509 taught by Professor Villamil during the Fall '08 term at University of Illinois, Urbana Champaign.
- Fall '08