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If the USReal Exchange Rate Is Greater Than 1, We Can Expect

Question 29

Multiple Choice

If the U.S.real exchange rate is greater than 1, we can expect that


A) goods in the U.S., on average, are more expensive than goods abroad
B) goods abroad, on average, are more expensive than goods in the U.S.
C) foreigners are less likely to buy more U.S. goods
D) the exchange rate should increase
E) domestic prices should decrease

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