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an increase in the expected inflation rate in the U.S. will increase the budget deficit in the U.S. relative to the budget deficits of foreign
an increase in the expected inflation rate in the U.S. will
| increase the budget deficit in the U.S. relative to the budget deficits of foreign governments |
| cause the U.S. exchange rate to depreciate |
| reduce the nominal interest rate in the U.S. |
cause the U.S. exchange rate to appreciate |
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Analysis for Financial Management
Authors: Robert C. Higgins
12th edition
1259918963, 9781260140729 , 978-1259918964
