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    Economics Principles and Policy Study Set 2
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    Exam 36: Exchange Rates and the Macroeconomy
  5. Question
    If Mexico Experiences a Period of Stable Prices While the United
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If Mexico Experiences a Period of Stable Prices While the United

Question 194

Question 194

Multiple Choice

If Mexico experiences a period of stable prices while the United States experiences rapid inflation, what will happen in Mexico?


A) An increase in aggregate supply
B) A decrease in aggregate supply
C) A decrease in aggregate demand
D) An increase in aggregate demand

Correct Answer:

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