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1  Other / Beginners & Help / help me understand economic concept on: June 13, 2011, 05:54:56 AM
Can anyone help me out with this? I can't quite get my head around it.

My teacher wants us to compare how economies adjust to changes in AD depending on whether they have a fixed or floating exchange rate.

I know it has something to do with being unable to use expansionary monetary policy, but other than that I'm stumped.

Thoughts?
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