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If the Foreign Price Level Rises, There Is A(n) ________

Question 127

Multiple Choice

If the foreign price level rises, there is a(n) ________ and net exports ________.


A) depreciation of the real exchange rate; rise
B) depreciation of the real exchange rate; fall
C) appreciation of the real exchange rate; rise
D) depreciation of the nominal exchange rate; rise
E) appreciation of the nominal exchange rate; rise

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