Assume That the Nominal Exchange Rate Decreases by 4

question 57

Multiple Choice

Assume that the nominal exchange rate decreases by 4%.If prices (both domestic and foreign do not change) ,we know that

• A)foreign goods are now relatively cheaper.
• B)foreign goods are now relatively more expensive.
• C)domestic goods are now relatively more expensive.
• D)both A and C

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Definitions:

Plaintiff

A plaintiff is an individual or entity who initiates a lawsuit against another party, known as the defendant, in a court of law seeking remedial relief or damages.

Jet

A high-speed aircraft powered by jet engines that is capable of flight at speeds greater than the speed of sound.

Offeror Dies

In contract law, this refers to the scenario where the individual making an offer (offeror) passes away before the offer is accepted, potentially affecting the validity of the offer.

Offer Terminates

Offer terminates refers to the point at which a proposal for a contract or agreement is withdrawn or becomes invalid, ending the possibility of acceptance.