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Which of the following would cause the nominal exchange rate to depreciate?

kolitchko

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Which of the following would cause the nominal exchange rate to depreciate?

Which of the following would cause the nominal exchange rate to depreciate?
A) The real exchange rate appreciates.
B) The domestic inflation rate increases.
C) The foreign inflation rate increases.
D) The government budget deficit increases.

Textbook

Money, Banking, and the Financial System

Money, Banking, and the Financial System

Edition: 3^rd

Authors: Hubbard, O'Brien

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