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In the Mundell-Fleming Model with Flexible Exchange Rates, an Increase

Question 83

Multiple Choice

In the Mundell-Fleming model with flexible exchange rates, an increase in the price level results in a(n) ______ in the real exchange rate and a(n) ______ in net exports.


A) increase; increase
B) increase; decrease
C) decrease; decrease
D) decrease; increase

Correct Answer:

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