When a Country's Real Exchange Rate Depreciates

question 37

Multiple Choice

When a country's real exchange rate depreciates,

• A)its nominal exchange rate must have appreciated.
• B)its nominal exchange rate must also have depreciated.
• C)it can trade its goods for fewer units of foreign goods.
• D)it can trade its goods for more units of foreign goods.

---

Definitions:

Significant Impairment

A considerable reduction or deterioration in the ability to perform normal functions or activities, often used in clinical contexts.

Abnormal Anxiety

Excessive worry or fear that is out of proportion to the actual situation and interferes with daily functioning.

Excessive

Going beyond the usual, necessary, or proper limit or degree; characterized by overindulgence or immoderation.

Antisocial Personality Disorder

The diagnosis given a person who is in frequent conflict with society, yet who is undeterred by punishment and experiences little or no guilt and anxiety.