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A Decrease in the Value of the Domestic Currency in Terms

Question 16

Multiple Choice

A decrease in the value of the domestic currency in terms of the foreign currency means that ________.


A) the domestic currency has appreciated and the nominal exchange rate has risen
B) the domestic currency has depreciated and the nominal exchange rate has fallen
C) the domestic currency has appreciated and the nominal exchange rate has fallen
D) the domestic currency has depreciated and the nominal exchange rate has risen

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