Which of the Following Would Cause the Nominal Exchange Rate

question 69

Multiple Choice

Which of the following would cause the nominal exchange rate to depreciate?

• A)The real exchange rate appreciates.
• B)The domestic inflation rate increases.
• C)The foreign inflation rate increases.
• D)The government budget deficit increases.

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Definitions:

Convenience

The quality or condition of being easy to do, use, or access, often improving efficiency or comfort.

Devitalized

Lacking in energy, vitality, or life force; often used to describe a deteriorated condition.

Rite of Passage

A ceremonial event or ritual that marks a person's transition from one status to another, often associated with cultural or religious practices.

Frivolities

Trivial or unserious activities or behaviors that may be considered time-wasting or lacking in seriousness or importance.