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    Exam 14: Exchange Rates I: the Monetary Approach in the Long Run
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    If PPP and Uncovered Interest Parity Hold, Then the Long-Run
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If PPP and Uncovered Interest Parity Hold, Then the Long-Run

Question 69

Question 69

Multiple Choice

If PPP and uncovered interest parity hold, then the long-run real rate of interest in each nation:


A) will never change.
B) will equalize.
C) will increase.
D) will decrease.

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