In the Mundell-Fleming Model, If the Price Level Falls, Then

question 67

Multiple Choice

In the Mundell-Fleming model, if the price level falls, then the equilibrium income

• A) rises and the real exchange rate appreciates.
• B) rises and the real exchange rate depreciates.
• C) falls and the real exchange rate appreciates.
• D) falls and the real exchange rate depreciates.

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