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Chako Chako
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8 years ago
Advocates of flexible exchange rates claim that under flexible exchange rates, a currency
A) depreciation caused by increasing the money supply would reduce unemployment by lowering the relative price of domestic products.
B) depreciation caused by increasing the money supply would increase unemployment by lowering the relative price of domestic products.
C) depreciation cause by decreasing the money supply would not effect unemployment, but would increase the relative price of domestic products.
D) depreciation caused by increasing the money supply would reduce unemployment by increasing the relative price of domestic products.
E) appreciation caused by increasing the money supply would reduce unemployment by lowering the relative price of domestic products.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
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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
Good answer, thank you
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#3
7 years ago
Thanks for the feedback, I'm sure others will appreciate it too
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