The General Equilibrium Theory can be used to analyze exchange rates by considering all the factors in an economy and their interdependencies. It assumes that all markets, including the foreign exchange market, are in equilibrium. Therefore, any changes in one market, such as the goods market, will affect other markets, including the exchange rate market. This theory can help in understanding how various economic policies and factors can influence exchange rates.
Have you ever had to dissect a complicated business scenario and were confused as to where to begin,...
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