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Holding All Else Constant, an Increase in U

Question 28

Multiple Choice

Holding all else constant, an increase in U.S. real GDP will ________ the supply for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.


A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase

Correct Answer:

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