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What is the probable effect of each of the following on the exchange rate of a country, other things being equal? The country's inflation rate
What is the probable effect of each of the following on the exchange rate of a country, other things being equal?
- The country's inflation rate falls well below that of its trading partners.
- Rising labor costs of the country's manufacturers lead to a worsening ability to compete in world markets.
Which would have a greater impact on exchange rate and why
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