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If Exports Permanently Decline, We Would Expect, in the Medium

Question 107

Multiple Choice

If exports permanently decline, we would expect, in the medium run,


A) interest rates to increase and the rate of inflation to fall.
B) interest rates to fall and the rate of inflation to increase.
C) a decline in both the rate of inflation and interest rates.
D) no change in interest rates or the rate of inflation.
E) a decline in both the price level and interest rates.

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