If US Real Income Increases, Then the Prediction of the Monetary

question 71

Multiple Choice

If U.S. real income increases, then the prediction of the monetary model of exchange rates would be that the U.S. dollar would:

• A) become stronger.
• B) appreciate in the short run, but not in the long run.
• C) depreciate.
• D) depreciate in the short run, but not in the long run.

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