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In a given year the inflation rate in UK exceeds the inflation rate in US. The nominal exchange rate remains unchanged. Which one of the

In a given year the inflation rate in UK exceeds the inflation rate in US. The nominal exchange rate remains unchanged. Which one of the following woll be the likely outcome?

		The pound will experience a real appreciation against the dollar.
		The pound will experience a real depreciation against the dollar.
		The real exchange rate between the pound and the dollar will remain unchanged.

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