If inflation in Russia is higher than it is in Canada
A) the purchasing power of the ruble in buying Russian goods will rise relative to the dollar.
B) the value of the dollar will rise in the long run.
C) the value of the ruble will rise in the long run.
D) the real exchange rate will change but the nominal exchange rate will not.
E) Both A and C are correct.
Correct Answer:
Verified
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