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    Principles of Macroeconomics Study Set 7
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    Exam 11: Exchange Rates and the Balance of Payments
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    Which of the Following Is the Result of an Overvalued
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Which of the Following Is the Result of an Overvalued

Question 89

Question 89

Multiple Choice

Which of the following is the result of an overvalued fixed exchange rate?


A) Inflation.
B) Depletion of official international reserves.
C) Increase in aggregate demand.
D) Decrease in imports.

Correct Answer:

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