The assertion is false. Let
The element does not belong to : assigning degrees and shows that every element of has nonnegative total degree, whereas has degree .
If for some multiplicative subset , the membership would give for some and . Since is a unique factorization domain and are coprime, the equation implies . Write . As is invertible in , so is
contrary to . Thus a subring of a localization of a ring need not itself be a localization of the original ring.

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