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Suppose inflation in the U.S. is greater than inflation in economies in the rest of the world, this would make the current U.S. real exchange

Suppose inflation in the U.S. is greater than inflation in economies in the rest of the world, this would make the current U.S. real exchange rate ____ than the nominal exchange rate;over time, if U.S. inflation continues to be greater than in other economies, this would cause the nominal dollar exchange rate to ____.

Select one:

a.less; depreciate

b.greater; appreciate

c.less; appreciate

d.greater; depreciate

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