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Suppose the Irish economy is at full employment. Suppose in a few months, the exchange rate of the Irish national currency, the punt, will decline, giving the Irish relatively less purchasing power in foreign markets. What will happen to the price level and real GDP in Ireland?
A. The price level will fall, and real GDP will rise.
B. The price level will fall, and real GDP will not change.
C. The price level will rise, and real GDP will rise.
D. The price level will fall, and real GDP will fall.
E. The price level will not change, and the real GDP will fall.
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Find the future worth in year 10 of a periodic investment that starts at $8300 in year 1, increases to $8988 in year 2, and increases by the same percentage each subsequent year. The interest rate is 4% per year.
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