Initially the Exchange Rate Between the South Korean Won and the Canadian

question 73

Multiple Choice

Initially the exchange rate between the South Korean won and the Canadian dollar is 950 won per dollar.If the exchange rate rises to 1,000 won per dollar and the Canadian and South Korean price levels do not change, then in the short run the real exchange rate

• A)does not change.
• B)is 1,000 won per dollar.
• C)falls.
• D)either rises, falls, or remains the same but we don't know for sure.
• E)rises.

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