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- Country Level Economics: Policies, Institutions, and Macroeconomic Performance | Online Course Support
Suppose the government of the United States introduces a permanent tax reduction without cutting expenditure over the next several years. The plan will go into effect next year. Assuming that tradables’ prices in foreign currency are given, what will be the impact of this policy on the real exchange rate of the dollar vis-à-vis other currencies a few years from now?
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