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Assume the United States Is the "Domestic" Country and Switzerland

Question 160

Multiple Choice

Assume the United States is the "domestic" country and Switzerland is the "foreign" country.Which of the following might decrease the real exchange rate between the United States and Switzerland?


A) a depreciation of the franc
B) an appreciation of the dollar
C) a decrease in the price level in the United States
D) a decrease in the price level in Switzerland

Correct Answer:

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