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    Applied International Economics
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    Exam 14: Exchange Rates and Their Determination: A Basic Model
  5. Question
    If Domestic Income Is Increasing Rapidly and Domestic Prices Are
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If Domestic Income Is Increasing Rapidly and Domestic Prices Are

Question 119

Question 119

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If domestic income is increasing rapidly and domestic prices are rising faster than foreign prices, what will happen to the exchange rate?

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