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KIM [24]
3 years ago
8

Suppose gdp falls in the united states, but it doesn't fall in bahrain. what is the short-run impact of this change in gdp on th

e value of the u.s. dollar (usd), the value of the bahraini dinars (bhd), and u.s. net exports (based on the changing value of the u.s. dollar)?
Business
1 answer:
VikaD [51]3 years ago
7 0

Following short run impacts will be there when United States GDP falls and Bahrain GDP does not.

The value of the US dollar will depreciate: US dollar will depreciate relative to Bahrain dinar.

The value of the Bahrain dinar will appreciate: Bahrain dinar will appreciate relative to US dollar.

The exports of United States will increase: Exports will increase because US products will become cheaper because of fall in value of US dollar.


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