Suppose That, as a Result of a Financial Crisis in Asia

question 17

Essay

Suppose that, as a result of a financial crisis in Asia, there is a large decline in the demand for U.S. exports.
(A) What effect will this have an the interest rate and the faur shares af GDP?
(B) Suppose that, at the sane time, there is a shap increase in the demand for U.S. dollar-tenaminated assets as a result of the financial crisis in Asia. Will this tend to offert or enhance the changes that you faund in part $( A )$ ?

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