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An Increase in the Exchange Rate of the U

Question 4

Multiple Choice

An increase in the exchange rate of the U.S.dollar relative to a trading partner can result from


A) higher anticipated costs of production in the U.S.
B) higher interest rates and higher inflation in the U.S.
C) higher growth rates in the trading partner's economy
D) a change in the terms of trade
E) lower export industry productivity

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