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Predict Changes in the Euro–Dollar Exchange Rate
The Expected Real Returns Curve, or Parity Curve
The Advantages and Disadvantages of Flexible Exchange Rates

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.

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Exchange Rate as the Price of Domestic Currency
Exchange Rates in a Fiat Money System
What Are Real Exchange Rates?
How to Calculate the Percent Change
Exchange Rates in a Commodity Standard System
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