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According to the real exchange rate approach to exchange rate determination, considering the exchange rate between the USD and Euro, an increase in the world
According to the real exchange rate approach to exchange rate determination, considering the exchange rate between the USD and Euro, an increase in the world relative demand for U.S. output causes a long-run real appreciation of the dollar against the euro. a short-run real depreciation of the dollar against the euro. a long-run real depreciation of the dollar against the euro. a short-run real appreciation of the euro against the dollar
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