When the Federal Reserve decreases the interest rate, there is a lower demand for the USD, causing the USD to appreciate firms will find it easier increasing As a consequence, U.S. to export their goods and services, thus aggregate demand.

When the Federal Reserve decreases the interest rate, there is a lower demand for the USD, causing the USD to appreciate firms will find it easier increasing As a consequence, U.S. to export their goods and services, thus aggregate demand.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: A Macroeconomic Theory Of The Open Economy

Section: Chapter Questions

Problem 4CQQ

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Question

When the Federal Reserve decreases the interest rate, there is a lower
demand for the USD, causing the USD to appreciate
firms will find it easier
increasing
As a consequence, U.S.
to export their goods and services, thus
aggregate demand.

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