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    Principles of Macroeconomics Study Set 4
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    Exam 15: Aggregate Demand, Aggregate Supply, and Inflation
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    Based on the Purchasing Power Parity Theory, in the Long
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Based on the Purchasing Power Parity Theory, in the Long

Question 13

Question 13

Multiple Choice

Based on the purchasing power parity theory, in the long run, currencies of countries with significant inflation will tend to:


A) be flexible.
B) have nominal exchange rates.
C) depreciate.
D) appreciate.

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