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Lecture Principles of economics (Brief edition, 2e): Chapter 21 - Robert H. Frank, Ben S. Bernanke
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Chapter 21 - Exchange rates, international trade, and capital flows. When you finish this chapter, you should be able to: Define the nominal exchange rate and use supply and demand to analyze how the nominal exchange rate is determined in the short run, distinguish between fixed and flexible exchange rates and discuss the advantages and disadvantages of each system, define the real exchange rate and show how it is related to the prices of goods across pairs of countries,