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What is happening to the Australian real exchange rate in each of the following situations? Explain. a The Australian nominal exchange rate is unchanged, but
What is happening to the Australian real exchange rate in each of the following situations?
Explain.
a
The Australian nominal exchange rate is unchanged, but prices rise faster in overseas
countries than in Australia.
b
The Australian nominal exchange rate is unchanged, but prices rise slower abroad than
in Australia.
c
The Australian nominal exchange rate declines, and prices are unchanged in Australia
and abroad.
d
The Australian nominal exchange rate declines, and prices rise faster abroad than in
Australia.
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