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Assume the United States Is the "Domestic" Country and Switzerland

Question 126

Multiple Choice

Assume the United States is the "domestic" country and Switzerland is the "foreign" country.Which of the following might decrease the real exchange rate between the U.S.dollar and the Swiss franc?


A) a depreciation of the franc
B) an appreciation of the dollar
C) a decrease in the price level in the United States
D) a decrease in the price level in Switzerland

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