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    Exam 31: Open-Economy Macroeconomics: Basic Concepts
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    If Prices in Mexico Rise at a Higher Rate Than
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If Prices in Mexico Rise at a Higher Rate Than

Question 54

Question 54

True/False

If prices in Mexico rise at a higher rate than prices in the U.S., then according to purchasing-power parity the U.S. nominal exchange rate with Mexico should rise.

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