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Firms in the US can be affected by movements in the exchange rate. If the exchange rate is defined as home currency units for one

Firms in the US can be affected by movements in the exchange rate. If the exchange rate is defined as home currency units for one unit of the foreign currency (HC/FC), an increase of the exchange rate would imply? (choose one)

Depreciation of the foreign currency

Appreciation of the home currency

Depreciation of the home currency

None of the above.

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