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In the Long Run,an Increase in the Domestic Money Supply

Question 195

Multiple Choice

In the long run,an increase in the domestic money supply:


A) causes the country's real exchange rate to rise.
B) causes the country's real exchange rate to fall.
C) does not affect the country's real exchange rate.
D) causes the country's real exchange rate to rise or fall,depending on purchasing power parity.

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