For This Question, Assume That All Price Levels Are Fixed

question 60

Multiple Choice

For this question, assume that all price levels are fixed. Now suppose that there is a real exchange rate depreciation. This real depreciation will cause which of the following to occur?

• A) A decrease in net exports.
• B) A decrease in exports.
• C) An increase in net exports.
• D) An increase in imports.
• E) A decrease in demand for domestic output.

---

Definitions:

Mediated

refers to the involvement of an intermediary or a medium in the process or relationship between two entities or variables.

Explicit Instruction

The social process in which children are purposefully taught to use the resources of their culture.

Culture Transmission

The process by which culture, including beliefs, norms, and values, is passed from one generation to the next or from one society to another.

Spaghetti

A long, thin, cylindrical pasta of Italian origin.