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A depreciation of the exchange rate is:

✅ The verified answer to this question is available below. Our community-reviewed solutions help you understand the material better.

A depreciation of the exchange rate is:

A decrease in the price of foreign currency relative to domestic

currency

❌

An increase in the price of foreign currency relative to domestic

currency

✅

An increase in the price of domestic money

❌

A stabilization of the currency around the expected inflation

❌

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