According to the simple monetary model, money is growing at 5% in the United States and 6% in the United Kingdom, while real GDP is rising at 3% in the United States, and at 5% in the United Kingdom. What will this do to the exchange rate?

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The Answer of According to the simple monetary model, money is growing at 5% in the United States and 6% in the United Kingdom, while real GDP is rising at 3% in the United States, and at 5% in the United Kingdom. What will this do to the exchange rate?

According to the Simple Monetary Model, Money Is Growing at 5