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What Is the Real-Balance Effect of an Increase in the Price

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What is the real-balance effect of an increase in the price level?

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Definitions:

Multinational Corporations (MNCs)

Companies that operate in multiple countries beyond their home country.

Operations

The day-to-day activities involved in running a business to produce goods or services.

Direct Quote

A quote in foreign exchange markets that specifies the domestic currency price for one unit of a foreign currency.

Political Risk

The risk associated with changes in government policy which may negatively affect domestic and foreign businesses.

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