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The Relation Between Changes in the Nominal and Real Exchange

Question 24

Multiple Choice

The relation between changes in the nominal and real exchange rates is given by which of the following equations?


A) ΔEX/EXr = ΔEX/EX + π - π f
B) ΔEXr/EX = ΔEXr/EXr + π - π f
C) ΔEX/EX = ΔEXr/EXr + π f + π
D) ΔEXr/EXr = ΔEX/EX + π f - π

Correct Answer:

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