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    International Economics Study Set 12
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    Exam 14: Exchange Rate Adjustments and the Balance of Payments
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    When Pursued Over the Long Run, a Policy of Increasing
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When Pursued Over the Long Run, a Policy of Increasing

Question 94

Question 94

True/False

When pursued over the long run, a policy of increasing the domestic money supply to offset an appreciation of the home country's currency results in inflation and a decrease in home-country competitiveness in key industries.

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