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In the Dornbusch-Fischer-Samuelson Model of Question #24 Above, a Rise

Question 7

Multiple Choice

In the Dornbusch-Fischer-Samuelson model of Question #24 above, a rise in labor productivity in the home country would cause real national income to __________ in the home country and __________ in the foreign country.


A) increase; to decrease
B) increase; also to increase
C) decrease; to increase
D) decrease; also to decrease

Correct Answer:

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