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If Real Incomes in Foreign Nations Were Growing Less Rapidly

Question 98

Multiple Choice

If real incomes in foreign nations were growing less rapidly than U.S. real incomes, one would expect that as a result,


A) ​the exchange value of the dollar would decline relative to other currencies.
B) ​the exchange value of the dollar would increase relative to other currencies.
C) ​there would likely be no effect on the exchange value of the dollar relative to other currencies.
D) ​there would be an indeterminate effect on the exchange value of the dollar relative to other currencies.

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