Which of the Following Would Decrease the Real Exchange Rate

question 33

Multiple Choice

Which of the following would decrease the real exchange rate in a small open economy in the long run?

• A)a personal income tax cut
• B)a reduction in government spending
• C)a tariff on imports
• D)an increase in investment
• Exhibit: Policies Influence Real Exchange Rate

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Definitions:

Elements

In accounting, elements refer to the basic categories of financial data that are classified in the financial statements, such as assets, liabilities, equity, revenue, and expenses.

Cash Receipts

Money received by a business or organization, including payments from customers, refunds, and interest earned.

Cash Sales

Transactions in which payment for goods or services is made at the time of sale, typically in cash or equivalent means.

Cash Register

A mechanical or electronic device for registering and calculating transactions at a point of sale.