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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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    If the Mexican Nominal Exchange Rate Does Not Change,but Prices
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If the Mexican Nominal Exchange Rate Does Not Change,but Prices

Question 76

Question 76

Multiple Choice

If the Mexican nominal exchange rate does not change,but prices rise faster in Mexico than in all other countries,then the Mexican real exchange rate


A) does not change.
B) rises.
C) declines.
D) There is not enough information to answer the question

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