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    Principles of Economics Study Set 1
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    Exam 28: Exchange Rates and the Open Economy
  5. Question
    A Decrease in the Real Exchange Rate Will Tend to ________
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A Decrease in the Real Exchange Rate Will Tend to ________

Question 53

Question 53

Multiple Choice

A decrease in the real exchange rate will tend to ________ exports and to ________ imports.


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

Correct Answer:

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