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Suppose purchasing power parity holds. In the US, the money supply grew at 3%, Real GDP at 2% and velocity grew at 3%. In Brazil,

Suppose purchasing power parity holds. In the US, the money supply grew at 3%, Real GDP at 2% and velocity grew at 3%. In Brazil, the Money supply grew at 5%, real GDP grew at 0% and velocity fell by 1%. Then the US dollar

a.

neither appreciated nor depreciated relative to the Brazilian Real

b.

appreciated by 1% relative to the Brazilian Real

c.

appreciated by 3% relative to the Brazilian Real

d.

none of the above

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