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Suppose E Increases by 5

Question 15

Multiple Choice

Suppose E increases by 5%. Which of the following will have occurred as a result of this increase in E?


A) Nominal appreciation by 5%.
B) Real depreciation if P increases by 5%.
C) Real appreciation if P decreases by 5%.
D) Effective appreciation by 5%.
E) Nominal depreciation by 5%.

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