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    Principles of Macroeconomics Study Set 8
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    Exam 18: Open Economy Macroeconomics Basic Concepts: A First Theory of Exchange-Rate Determination Purchasing-Power Parity
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    According to Purchasing-Power Parity Which of the Following Would Happen
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According to Purchasing-Power Parity Which of the Following Would Happen

Question 52

Question 52

Multiple Choice

According to purchasing-power parity which of the following would happen if a country raised its money supply growth rate?


A) its nominal exchange rate would fall
B) its real exchange rate would fall
C) its real net exports would rise
D) All of the above would happen.

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