Movements in AA and DD

The exercise was created 2022-05-30 by swedlink100. Question count: 12.




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  • The nominal interest rate (R) decreases AA shift upwards
  • The nominal interest rate (R) increases AA shift downwards
  • Expected exchange rate increase AA shift upwards
  • Expected exchange rate decrease AA shift downwards
  • The nominal interest rate (R*) increases AA shift upwards
  • The nominal interest rate (R*) decreases AA shift downwards
  • C, I, G, T, CA increase DD shift downwards
  • C, I, G, T, CA decrease DD shift upwards
  • P decreases CA increases DD shifts downwards
  • P increases CA decreases DD shift upwards
  • P* increases CA increases DD shift downwards
  • P* decreases CA decreases DD shift downwards

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