A Revaluation of the Exchange Rate Is a Policy Action

question 46

Multiple Choice

A revaluation of the exchange rate is a policy action that

• A) increases the real exchange rate.
• B) decreases the real exchange rate.
• C) increases the nominal exchange rate.
• D) decreases the nominal exchange rate.
• E) fixes the nominal exchange rate.

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Definitions:

Relative Frequency

The proportion of times a particular value or category appears in a dataset relative to the total number of observations.

Crosstabulation

A tabular summary of data for two variables. The classes for one variable are represented by the rows; the classes for the other variable are represented by the columns.

Variables

Elements, characteristics, or attributes that can take on different values and are used in scientific research or statistical analysis.

Stem-and-Leaf Display

A graphical method of displaying quantitative data to assess its distribution, by dividing each data point into a "stem" and a "leaf".