If Money Is Neutral, the Nominal Exchange Rate Must _____

question 6

Multiple Choice

If money is neutral, the nominal exchange rate must _____ when the domestic price level rises.

• A)fall
• B)rise
• C)not change
• D)none of the above

---

Definitions:

Outer Weathered Zone

The top layer of the Earth's surface, altered by weathering processes, involving the physical and chemical breakdown of rocks and minerals.

Fractured Rocks

Rocks that have been broken or cracked through natural processes or human activity, often creating pathways for the movement of fluids or gases.

Preferential Weathering

The process where certain materials in rocks weather at different rates due to variations in properties like composition and hardness.

Sinkholes Form

Natural depressions or holes in the Earth's surface that occur when underlying rock dissolves or collapses.