Other Things the Same,an Increase in the Foreign Price Level

question 53

Multiple Choice

Other things the same,an increase in the foreign price level

• A)reduces the real exchange rate.This reduction could be offset by a decrease in the domestic price level.
• B)reduces the real exchange rate.This reduction could be offset by an increase in the domestic price level.
• C)increases the real exchange rate.This increase could be offset by a decrease in the domestic price level.
• D)increases the real exchange rate.This increase could be offset by an increase in the domestic price level.

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Definitions:

Positivist Perspective

A philosophical approach that emphasizes empirical and scientific evidence to understand and explain social phenomena.

Absolutist

Adopting a perspective or stance that does not allow for flexibility, compromise, or variation; seeing things in an absolute, unchangeable way.

Positive Deviants

Individuals or groups who deviate from the norm in ways that have beneficial effects or contribute positively to society.

Intellectual

An intellectual is an individual who engages in critical thinking, research, and reflection about society and proposes solutions for its normative problems.