If the USReal Exchange Rate Is Greater Than 1, We Can Expect

question 29

Multiple Choice

If the U.S.real exchange rate is greater than 1, we can expect that

• A)goods in the U.S., on average, are more expensive than goods abroad
• B)goods abroad, on average, are more expensive than goods in the U.S.
• C)foreigners are less likely to buy more U.S. goods
• D)the exchange rate should increase
• E)domestic prices should decrease

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Definitions:

Nonlinear

Describes a relationship or equation that does not form a straight line when graphed, indicating a proportionality that changes with varying values.

Moderate

A term indicating a middle or average degree of intensity, quality, or quantity.

Circumference

The linear distance around the edge of a circle or circular object.

Weight

A measure of the gravitational force exerted on an object, typically measured in units like kilograms or pounds.