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assume that initially, PPP holds, if the inflation rate in your country falls relative to the inflation rate in the United States. The domestic currency

assume that initially, PPP holds, if the inflation rate in your country falls relative to the inflation rate in the United States. The domestic currency is ______ and will ________.

select one

a. overvalued; appreciate

b. undervalued; appreciate

c. overvalued; depreciate

d. undervalued; depreciate

e. remain unchanged

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