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M5 Assignment 2 Discussion
Assignment 2: The Net Exports Effect
The “net exports effect” is the impact on a country’s total spending caused by an inverse relationship between the price level and the net exports of an economy. Using this principle, discuss how the following economic variables change during an economic expansion:
In your answer, also discuss the case in the context of both a flexible exchange rate and a fixed exchange rate.
By the due date assigned, post your initial discussion response in the Discussion
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