If the Real Exchange Rate Rises 2%,domestic Inflation Is 3%,and

question 81

Multiple Choice

If the real exchange rate rises 2%,domestic inflation is 3%,and foreign inflation is 1%,what is the percent change in the nominal exchange rate?

• A)6%
• B)4%
• C)2%
• D)0%

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Definitions:

Social Rules

Agreed-upon guidelines that dictate the behavior expected of individuals within a society or group.

Conventions

Established norms, rules, or practices that dictate certain behaviors or actions within a society or group.

Difference-equals-deficit

A biased belief that differences in cultural or individual characteristics are inherently inferior.

Hearing Impaired

A term used to describe individuals who have partial or total inability to hear; includes both those who are hard of hearing and those who are deaf.