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    Exam 12: An AD As Model of the Inflation Rate and Real GDP
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    If the Domestic Currency Depreciates, Raising the Nominal Exchange Rate
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If the Domestic Currency Depreciates, Raising the Nominal Exchange Rate

Question 51

Question 51

Multiple Choice

If the domestic currency depreciates, raising the nominal exchange rate but leaving other things unchanged, the real exchange rate will:


A) decrease.
B) increase.
C) not be affected.
D) none of the above.

Correct Answer:

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