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Assume that due to productivity improvements, the supply otAustralian products increases relative to European products. Which of the following is correct according to the general
Assume that due to productivity improvements, the supply otAustralian products increases relative to European products. Which of the following is correct according to the general model of longrun exchange rates? CI A. The Australian Dollar depreciates against the Euro in nominal terms O B. The Australian Dollar appreciates against the Euro in nominal terms Cl C. There is no change in the nominal Dollari'Euro exchange rate O D. The Australian Dollar may appreciate or depreciate against the Euro in nominal terms C) E. The Australian Dollar appreciates against the Euro in real terms
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