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unit 7

Horizontales
In the expansionary MP the IR _____.
A revaluation leads to a _____ in the current account.
A reduction in the value of a currency that is set under a fixed exchange rate regime.
In a contractionary MP the interest rates _____.
Determined by supply and demand.
If CA decreases then FA _____.
Problem- inflation/ overheated economy.
If exports dcrease then ___ $ into the U.S.
Verticales
A rule governing policy toward the exchange rate.
An increase in the value of a currency that is set under a fixed exchange rate regime.
Problem- recession/ slow growth.
In the expansionary MP the money supply ______.
If CA increases then FA ____.
In a contractionary MP the money supply _____.
A devaluation leads to an _____ in the current account.