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If the Exchange Rate Between Two Countries Is Expected to Remain

Question 13

Multiple Choice

If the exchange rate between two countries is expected to remain fixed at its current rate,then


A) output growth rates must be equal in the two countries.
B) price levels must be equal in the two countries.
C) inflation rates must be equal in the two countries.
D) nominal interest rates must be equal in the two countries.
E) none of the above

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