Multiple Choice
All else equal, net exports of a country will increase the most if
A) its inflation rate decreases and its exchange rate depreciates.
B) its inflation rate increases and its exchange rate appreciates.
C) its inflation rate decreases and its exchange rate appreciates.
D) its inflation rate increases and its exchange rate depreciates.
E) both its inflation rate and exchange rate remain the same.
Correct Answer:
Verified
Correct Answer:
Verified
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