In the Long Run,a Rise in a Country's Price Level

question 28

Multiple Choice

In the long run,a rise in a country's price level (relative to the foreign price level) causes its currency to ________,while a fall in the country's relative price level causes its currency to ________.

• A)appreciate;appreciate
• B)appreciate;depreciate
• C)depreciate;appreciate
• D)depreciate;depreciate

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Definitions:

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