If the Nominal Exchange Rate Rises 5%,domestic Inflation Is 2%,and

question 89

Multiple Choice

If the nominal exchange rate rises 5%,domestic inflation is 2%,and foreign inflation is 3%,what is the percent change in the real exchange rate?

• A)8%
• B)6%
• C)4%
• D)2%

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Definitions:

Environmental Factors

External elements including temperature, water, sunlight, and soil that affect living organisms and the functioning of ecosystems.

Fetus Development

The stage of human development in the womb from the ninth week after fertilization until birth, involving significant growth and differentiation of tissues and organs.

Germ Layer

In early embryonic development, one of the three primary layers (ectoderm, mesoderm, and endoderm) that give rise to all tissues and organs of an organism.

Dermis

The layer of skin beneath the epidermis that contains nerve endings, sweat glands, and hair follicles.