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If Nothing Else Changes, the ________ the Current Exchange Rate

Question 201

Multiple Choice

If nothing else changes, the ________ the current exchange rate, the ________ is the expected profit from holding dollars, all other things remaining the same.


A) higher; larger
B) lower; smaller
C) lower; larger
D) The premise of the question is wrong because the exchange rate has nothing to do with expected profit from holding dollars.

Correct Answer:

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