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The Following Figure Shows the Net Exports Curve for a Country

question 37

Essay

The following figure shows the net exports curve for a country:
The following figure shows the net exports curve for a country:    -Refer to the figure above.Explain why the real exchange rate cannot stay far above R*.
-Refer to the figure above.Explain why the real exchange rate cannot stay far above R*.


Definitions:

Excitation Reaction

A physiological response that increases the activity or efficiency of a part of the body or brain.

Receptor Sites

Specific regions on the surface of a cell where molecules such as neurotransmitters can bind to initiate a cellular response.

Agonist

A substance that fully activates the receptor it binds to, producing a full biological response.

Antagonist

In physiology, a muscle that acts in opposition to the action of another muscle, called the agonist; in pharmacology, a substance that inhibits the action of another substance.

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