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When the Ratio of Domestic Prices to Foreign Prices Falls,________

Question 35

Multiple Choice

When the ratio of domestic prices to foreign prices falls,________.


A) the real exchange rate depreciates only when the nominal exchange rate appreciates
B) the real exchange rate depreciates only when the nominal exchange rate depreciates
C) the real exchange rate depreciates even when the nominal exchange rate is constant
D) the real exchange rate appreciates

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