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If the Exchange Rate Changes from 3 Brazilian Reals Per

Question 21

Multiple Choice

If the exchange rate changes from 3 Brazilian reals per rand to 4 reals per rand,


A) None of these answers.
B) the rand has appreciated.
C) the rand has depreciated.
D) the rand could have appreciated or depreciated depending what happened to relative prices in Brazil and SA.

Correct Answer:

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