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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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