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Econ 333 international economics Question 18 1 pts If a nation experiences 5% inflation while its trading partner experiences 1% inflation, and if PPP holds,

Econ 333 international economics

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Question 18 1 pts If a nation experiences 5% inflation while its trading partner experiences 1% inflation, and if PPP holds, what happens to its real exchange rate? O it depreciates by 4%. it does not change O it appreciates by 4%. O No answer text provided

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