A real depreciation will tend to cause
A) a reduction in exports.
B) an increase in imports.
C) a reduction in net exports.
D) an increase in demand for domestic goods.
E) none of the above
Correct Answer:
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A)an
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Q11: Assume that the interest parity condition holds.Also
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Q13: The interest parity condition indicates that the
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Q15: In an open economy under flexible exchange
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