1. Domestic currency depreciation will:
a. help domestic firms that export and hurt domestic firms that import.
b. help domestic firms that import.
c. hurt domestic firms that export and help domestic firms that import.
d. hurt domestic firms that export.
2. Capital outflows occur if:
a. domestic interest rates are higher than foreign interest rates.
b. domestic interest rates are lower than foreign interest rates.
c. domestic and foreign interest rates are the same.
d. none of the above.
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