Suppose That the Real Exchange Rate Between the United States

question 252

Multiple Choice

Suppose that the real exchange rate between the United States and Zambia is defined in terms of baskets of goods.Other things the same,which of the following will increase the real exchange rate (that is increase the number of baskets of Zambian goods a basket of U.S.goods buys) ?

• A)a decrease in the number of Zambian Kwacha that can be purchased with a dollar
• B)a decrease in the price of U.S.baskets of goods
• C)a decrease in the price in Zambian Kwacha of Zambian goods
• D)None of the above is correct.

---

Definitions:

Otitis Externa

An inflammation or infection of the external auditory canal, also known as swimmer's ear.

Acetic Acid Eardrops

A solution used in the treatment of outer ear infections that works by restoring the normal acidic environment of the ear canal.

Swab

A small piece of absorbent material on a stick or wire base, used to collect samples of substances from various parts of the body for testing or cleansing.

Hydrogen Peroxide

A chemical compound used as an oxidizer, bleaching agent, and antiseptic.