Foreign Currency Question

Foreign Currency Question

by Luke Metzler -
Number of replies: 1

When it comes to the multiplier principle, how does a high output level stay high within the means of obtaining the value of foreign currency due to exports? Since a lot of U.S citizens obtain income from exports and spend U.S currency for imports from foreign countries, how would this affect the output level? Especially since foreign currency could be worth more or less, it could change the output level significantly.

In reply to Luke Metzler

Re: Foreign Currency Question

by Danny Weaver -
You'll have to ask me this in class. I am struggling to understand the question. Sorry!