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CHAPTER 4 - Coggle Diagram
CHAPTER 4
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Foreign exchange market
Norminal exchange rate
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- Direct quote:
1 foreign currency unit = x home currency units (E)
- Indirect quote
1 home currency units = x foreign currency unit (e)
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Foreign exchange rate
R = ( E * p^f)/ p^d
- p^d: domestic price
- p^f: foreign price
- R: real exchange rate
- E: nominal exchange rate
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Foreign exchange markets
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Real exchange rate
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Fiscal policy
- Decision maker: government
- Tools: G,T
- Type: Expansionary G tăng, T giảm, G tăng và T giảm
Contractionary G giảm, T tăng, G giảm và T tăng
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