Predict Changes in the Euro–Dollar Exchange Rate
What Determines (Or Changes) Exchange Rates
What Is an Exchange Rate Regime?

Establish Money Market Equilibrium

Start with an increase in output.

An increase in output increases the money demand curve, which, in turn, increases the real interest rate without changing the quantity of real money.

  • Add a Comment
  • Print
  • Share


Promoted Stories From Around The Web

blog comments powered by Disqus
Intervention into Floating Exchange Rates
The Role of Multinational Firms in Foreign Exchange Markets
Asset Approach to Exchange Rate Determination
Exchange Rate as the Price of Domestic Currency
How to Determine Exchange Rates through Supply and Demand