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Chako Chako
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8 years ago
Under the monetary approach to the exchange rate
A) an interest rate increase is associated with higher expected inflation and a currency that will be weaker on all future dates.
B) an interest rate increase is associated with higher expected inflation and a currency that will be strengthened on all future dates.
C) an interest rate decrease is associated with higher expected inflation and a currency that will be weaker on all future dates.
D) an interest rate increase is associated with higher expected deflation and a currency that will be weaker on all future dates.
E) an interest rate increase is associated with higher expected deflation and a currency that will be strengthened on all future dates.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
Read 129 times
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machukianmachukian
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#1
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8 years ago
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Chako Author
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#2
8 years ago
Makes a lot of sense, and you're right.. I appreciate the input
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#3
8 years ago
Don't forget to vote my answer as best Nerd Face
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