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    Macroeconomics Study Set 10
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    Exam 13: Exchange Rates, business Cycles, and Macroeconomic Policy in the Open Economy
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    If the Real Exchange Rate Rises 2%,domestic Inflation Is 3%,and
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If the Real Exchange Rate Rises 2%,domestic Inflation Is 3%,and

Question 81

Question 81

Multiple Choice

If the real exchange rate rises 2%,domestic inflation is 3%,and foreign inflation is 1%,what is the percent change in the nominal exchange rate?


A) 6%
B) 4%
C) 2%
D) 0%

Correct Answer:

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