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Question of the Week: Level 1 - Macroeconomics

If the nominal USD/EUR exchange increased 9% over the last year, Eurozone CPI increased by 1.88% and US CPI increased by 1.02%, then:

Question of the Week: Level 1 - Macroeconomics 11 votes

A. the real exchange rate will be lower by approximately 9.86%.
18% 2 votes
B. the real exchange rate will be higher by approximately 9.08%.
18% 2 votes
C. the real exchange rate will be higher by approximately 9.86%.
63% 7 votes

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