8. True or False and Explain Why or Why Not: A reduction in the US price level will reduce the real exchange rate and so lead to an increase in net exports.

Brief Principles of Macroeconomics (MindTap Course List)
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ISBN:9781337091985
Author:N. Gregory Mankiw
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Chapter14: A Macroeconomic Theory Of The Open Economy
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8. True or False and Explain Why or Why Not: A reduction in the US price level will reduce the
real exchange rate and so lead to an increase in net exports.
Transcribed Image Text:8. True or False and Explain Why or Why Not: A reduction in the US price level will reduce the real exchange rate and so lead to an increase in net exports.
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