Which of the Following,all Else Fixed,will Cause the Real Exchange

question 12

Multiple Choice

Which of the following,all else fixed,will cause the real exchange rate to decrease?

• A)a nominal appreciation
• B)an increase in the foreign price level
• C)an increase in the domestic price level
• D)all of the above
• E) none of the above

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Definitions:

Methane

A colorless, odorless flammable gas that is the simplest alkane, used as a fuel and in chemical synthesis.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize foods from carbon dioxide and water. Photosynthesis in plants generally involves the green pigment chlorophyll and generates oxygen as a byproduct.

Chloroplasts

Organelles found in plant and algal cells responsible for photosynthesis, the process by which light energy is converted to chemical energy in the form of glucose.

Photosynthesis

A biochemical process in plants, algae, and some bacteria that converts sunlight, water, and carbon dioxide into glucose and oxygen, utilizing chlorophyll.