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According to Purchasing-Power Parity, If Prices in the United States

Question 218

Multiple Choice

According to purchasing-power parity, if prices in the United States increase by a larger percentage than prices in Poland, then


A) the real exchange defined as Polish goods per unit of U.S. goods rises.
B) the real exchange defined as Polish goods per unit of U.S. goods falls.
C) the nominal exchange rate defined as Polish currency per dollar rises.
D) the nominal exchange rate defined as Polish currency per dollar falls.

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