Suppose That the Nominal Exchange Rate Between the U

question 15

Multiple Choice

Suppose that the nominal exchange rate between the U.S.dollar and the Canadian dollar is 0.75 U.S.dollars per Canadian dollar.If Canada's rate of inflation is 0 percent and the U.S.rate is 10 percent,then the real exchange rate for the U.S.dollar will

• A)appreciate by about 9 percent.
• B)appreciate by 10 percent.
• C)depreciate by about 9 percent.
• D)depreciate by 10 percent.
• E)None of the above.

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Definitions:

Situation

A set of circumstances or a state of affairs at a particular time.

Emotion Work

The process of managing one's feelings and expressions based on the social norms of a given situation.

Feeling Rules

Cultural norms or guidelines that dictate the appropriate emotions to be expressed in various social situations.

Emotion Management

Involves people obeying “feeling rules” and responding appropriately to the situations in which they find themselves.