Concerning the Exchange Rate Index of the U

question 76

Multiple Choice

Concerning the exchange rate index of the U.S.dollar, suppose that the dollar's real exchange rate index rises from 95 to 115.This means that

• A) the dollar has depreciated against the currencies of its major trading partners.
• B) the dollar has appreciated against the currencies of its major trading partners.
• C) the dollar's nominal exchange rate index falls.
• D) the dollar's nominal exchange rate index remains constant.

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Definitions:

Observable Behavior

Actions or reactions of an individual, in response to external or internal stimuli, that are visible and measurable.

Sigmund Freud

An innovator in neurology from Austria, he introduced psychoanalysis as a method to heal psychopathologies through verbal exchanges between a patient and a psychoanalyst.

Functions

Distinctive roles or activities that an entity or process performs or serves in a system or organization.

William James

An American psychologist and philosopher who is considered one of the founding figures of modern psychology.