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Under a System of Flexible Exchange Rates, Which of the Following

Question 80

Multiple Choice

Under a system of flexible exchange rates, which of the following will cause the nation's currency to depreciate in the exchange market?


A) an increase in foreign incomes
B) a domestic inflation rate of 10 percent while the nation's trading partners are experiencing stable prices
C) an increase in domestic interest rates
D) a reduction in interest rates abroad

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