Chapter 18: Q.10 (page 495)
If the Indian government unexpectedly announces that
it will be imposing higher tariffs on foreign goods one
year from now, what will happen to the value of the
Indian rupee today?
The indian rupee will appreciate.
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Suppose the president of the United States announces a new set of reforms that includes a new anti-inflation program. Assuming the announcement is believed by the public, what will happen to the exchange rate on the U.S. dollar.
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