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    Principles of Macroeconomics Study Set 8
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    Exam 18: Open Economy Macroeconomics Basic Concepts: A First Theory of Exchange-Rate Determination Purchasing-Power Parity
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    During a Hyperinflation the Real Domestic Value of a Country's
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During a Hyperinflation the Real Domestic Value of a Country's

Question 8

Question 8

Multiple Choice

During a hyperinflation the real domestic value of a country's currency


A) falls and its nominal exchange rate depreciates.
B) falls and its nominal exchange rate appreciates.
C) rises and its nominal exchange rate depreciates.
D) rises and its nominal exchange rate appreciates.

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