| Fiscal policy in the U.S. | expansionary (unexpected) | ||
| Real interest rate | ↑ | ||
| USD | ↑(appreciation) | ||
| Economic growth | ↑ | ||
| Inflation | ↑ | ||
| Imports | ↑ | ||
| USD | ↓(depreciation) | ||
| USD | ↑(appreciation) (*) |
(*) Financial capital is more mobile than the goods market so the overall short-run effect would be for the dollar to appreciate.
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