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According to the monetary approach to exchange rates (lecture 4), which of the following is a wrong statement? O a decrease in the domestic money
According to the monetary approach to exchange rates (lecture 4), which of the following is a wrong statement? O a decrease in the domestic money supply causes a proportional reduction in the domestic price level O in the long-run, the exchange rate is determined by the relative supply and demand of real monetary assets in money markets across countries. O a fall in the domestic interest rate causes a depreciation of the domestic currency in the long-run O the Fisher Effect implies that a fall in the interest rate on deposits of domestic currency in the long-run causes an equal reduction in the inflation rate
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