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The Exchange Rate Is About 17 Nicaraguan Cordoba Per Dollar

Question 171

Multiple Choice

The exchange rate is about 17 Nicaraguan cordoba per dollar.According to purchasing-power parity,this exchange rate would rise if


A) the price level in either the United States or Nicaragua rose.
B) the price level in either the United States or Nicaragua fell.
C) the price level in the United States rose or the price level in Nicaragua fell.
D) the price level in the United States fell or the price level in Nicaragua rose.

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