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    Principles of Economics
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    Exam 32: A Macroeconomic Theory of the Open Economy
  5. Question
    If Money Is Neutral, the Nominal Exchange Rate Must _____
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If Money Is Neutral, the Nominal Exchange Rate Must _____

Question 6

Question 6

Multiple Choice

If money is neutral, the nominal exchange rate must _____ when the domestic price level rises.


A) fall
B) rise
C) not change
D) none of the above

Correct Answer:

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