Question: In the absence off-setting changes, what would be likely to increase if a country's exchange rate appreciates?
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a.the level of unemployment
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b.the rate of domestic inflation
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c.the cost of imported raw materials
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d.the volume of manufacturing exports
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e.none of them
Answer: c
 the level of unemployment b) the rate of domestic inflation c) the cost of imported raw materials d) the volume of manufacturing exports e) none of them Ans. c) the cost of imported raw materials
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