If the demand for Home exports decreased abroad, the Home fall in output would be greatest
A) if the decrease was temporary and the exchange rate was fixed.
B) if the decrease was temporary and the exchange rate was floating.
C) if the decrease was permanent and the exchange rate was fixed.
D) if the decrease was permanent and the exchange rate was floating.
E) if the decrease was permanent and the exchange rate was high.
Correct Answer:
Verified
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