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(Solved): Suppose that the current nominal exchange rate between Germany and Uganda (who are trading partners) ...



Suppose that the current nominal exchange rate between Germany and Uganda (who are trading partners) is 4,246 Ugandan shillings per Euro. What would happen in the Ugandan foreign exchange market if the cost of consumption were to fall in Uganda? Pick the choice that correctly shows a relevant shift for the Ugandan foreign exchange market.



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