
- UID
- 223278
- 帖子
- 283
- 主题
- 138
- 注册时间
- 2011-7-11
- 最后登录
- 2016-4-21
|
I'm reading page 144 of SN (econ):
They are saying that base currency appreciation will cause exports to decrease and imports to increase, thus decreasing aggregate demand.
Based on the AD formula: AD= C + I + G + (X-I) ,
They must be assuming that X will decrease more than the increase in I otherwise they would offset and AD would be unchanged. Opposite is true for base currency depreciation.
What is the logic behind this assumption that X is affected more by currency appreciations/depreciations than I? |
|