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Assuming All Other Things Equal, What Would Happen to the U.S

Question 138

Essay

Assuming all other things equal, what would happen to the U.S. dollar real exchange rate under each of the following circumstances?
a.The U.S.nominal exchange rate depreciates.
b.U.S.domestic prices increase.
c.Prices in the rest of the world rise.

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a.
The U.S. dollar real exchan...

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