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1. If real exchange rate, R(t), is less than 1, it implies
A: Relative purchasing power of US consumers for foreign-goods improves
B: Competitiveness of US multinationals in foreign markets declines
C: Competitiveness of US multinationals in foreign markets improves
2. Uncovered interest rate parity (or UIP) is the same as
A: International Fisher effect
B: Covered interest rate parity
C: Purchasing power parity
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