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If a nominal exchange rate suddenly appreciates and domestic and foreign inflation are similar, a firm with costs in the domestic market and sales in
If a nominal exchange rate suddenly appreciates and domestic and foreign inflation are similar, a firm with costs in the domestic market and sales in a foreign market will experience a(n) ____ in profits (expressed in the local currency), and the country's net exports will ____.
Group of answer choices
A. increase; increase
B. decrease; increase
C. decrease; decrease
D. increase; decrease
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