Chapter 13 Exchange Rates, Business Cycles, and Macroeconomic Policy in the Open Economy.

Chapter 13 Exchange Rates, Business Cycles, and Macroeconomic Policy in the Open Economy

Figure 13.2 The U.S. real exchange rate and net exports, 1973–2003
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Figure 13.3 The supply of and demand for the dollar

Figure 13.4 The effect of increased export quality on the value of the dollar

Figure 13.5 Goods market equilibrium in an open economy

Figure 13.6 Derivation of the IS curve in an open economy

Figure 13.7 Effect of an increase in government purchases on the open-economy IS curve

Figure 13.8 Effect of an increase in net exports on the open-economy IS curve

Figure 13.9 Effects of an increase in domestic government purchases

Figure 13.9 Effects of an increase in domestic government purchases (cont’d)

Figure 13.10 Effects of a decrease in the domestic money supply

Figure 13.10 Effects of a decrease in the domestic money supply (cont’d)

Figure 13.11 An overvalued exchange rate

Figure 13.12 A speculative run on an overvalued currency

Figure 13.13 An undervalued exchange rate

Figure 13.14 Determination of the money supply under fixed exchange rates

Figure 13.15 Coordinated monetary expansion

Figure 13.16 Dollars per euro

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