Answered

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Choose the correct statement.
a. the market fundamentals that determine the exchange rate in the long run are the real exchange rate and the quantities of money in each economy.
b. in the long​ run, a change in the nominal exchange rate brings an equivalent change in the real exchange rate.
c. in the long​ run, a rise in the foreign price level brings dollar depreciation and a rise in the canadian price level brings dollar appreciation.
d. for a given exchange​ rate, a change in the quantity of money changes the price level but has no effect on the exchange rate.

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