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Business, 26.07.2020 01:01 jennsou

Suppose the aggregate price level for a given market basket of goods in Macroland is 125, while the aggregate price level for the same market basket of goods in Funland is 150. Suppose the current exchange rate is 10 Macroland dollars for 1 Funland dollar. If the aggregate price level of the market basket in Macroland increases to 150, what must the exchange rate be in order for the real exchange rate to be unchanged from its initial level

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Suppose the aggregate price level for a given market basket of goods in Macroland is 125, while the...
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