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Advocates of flexible exchange rates claim that under flexible exchange rates, a currency

Chako

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8 years ago

Advocates of flexible exchange rates claim that under flexible exchange rates, a currency

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 increasing world demand for them.
B) appreciation caused by increasing the money supply would reduce unemployment by increasing world demand for them.
C) appreciation caused by increasing the money supply would increase unemployment by increasing world demand for them.
D) appreciation caused by decreasing the money supply would reduce unemployment by increasing world demand for them.
E) appreciation caused by increasing the money supply would increase unemployment by decreasing world demand for them.

Textbook

International Economics: Theory and Policy

Edition: 10^th

Author: Krugman

Read 158 times

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machukian

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Chako Author

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8 years ago

Correct!

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machukian

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8 years ago

Thanks for the feedback, I'm sure others will appreciate it too

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