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In an open economy, a permanent beneficial supply shock (s < 0) implies that the domestic real exchange rate will: Question 10 options: depreciate so

In an open economy, a permanent beneficial supply shock (s < 0) implies that the domestic real exchange rate will: Question 10 options: depreciate so as to crowd-in net exports remain unchanged because of offsetting movements in real interest rates remain unchanged because of offsetting movements in the domestic price level appreciate as the rest of the world buys the domestic currency

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