A) a decision to let the currency float.
B) an increase in the pegged value of the domestic currency.
C) a reduction in the foreign price level.
D) a reduction in the domestic price level.
E) none of the above
ANSWER:
D
A) a decision to let the currency float.
B) an increase in the pegged value of the domestic currency.
C) a reduction in the foreign price level.
D) a reduction in the domestic price level.
E) none of the above
ANSWER:
D