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    Economics Principles and Policy Study Set 2
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    Exam 36: Exchange Rates and the Macroeconomy
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    A Fall in the Relative Prices of a Country's Exports
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A Fall in the Relative Prices of a Country's Exports

Question 30

Question 30

Multiple Choice

A fall in the relative prices of a country's exports tends to ________________ that country's net exports, and thereby, to ____ its real GDP.


A) increase; raise
B) decrease; raise
C) decrease; decrease
D) None of the above is correct.

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