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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:...
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- Fall '08