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1).A reduction on the real exchange rate will: A.Increase the production of non-tradables and reduce the consumption of tradables B.decrease the relative price of non-tradable

1).A reduction on the real exchange rate will:

A.Increase the production of non-tradables and reduce the consumption of tradables

B.decrease the relative price of non-tradable goods

C. none of the available answers are relevant

D. Increase the relative price of tradeable goods

E. Increase the production of non-tradables and reduce the consumption of non-tradeables

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