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  3. Study Set
    International Economics Study Set 7
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    Exam 17: Output and the Exchange Rate in the Short Run
  5. Question
    The Current Account Increases When
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The Current Account Increases When

Question 2

Question 2

Multiple Choice

The current account increases when


A) real exchange rate decreases.
B) real exchange rate increases.
C) disposable income increases.
D) exports fall.
E) domestic prices fall.

Correct Answer:

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