Multiple Choice
The effect of an increase in a country's inflation on its net exports is equivalent to
A) a depreciation of its currency.
B) an appreciation of its currency.
C) an increase in the prices of its imports.
D) a decrease in the prices of its exports.
E) a decrease in the price of its currency in term of a foreign currency.
Correct Answer:
Verified
Correct Answer:
Verified
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