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5. Suppose purchasing power parity holds between China and Japan. An increase in Chinese inflation will cause _____ of the Yuan and _____ of the
5. Suppose purchasing power parity holds between China and Japan. An increase in Chinese inflation will cause _____ of the Yuan and _____ of the yen and _____ in the Yuan/yen exchange rate.
a. a depreciation; an appreciation; an increase
b. an appreciation; a depreciation; a fall
c. a depreciation; an appreciation; a fall
d. an appreciation; a depreciation; an increase
e. a depreciation; an appreciation; no change
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