Assume That the Nominal Exchange Rate Increases by 2

question 27

Multiple Choice

Assume that the nominal exchange rate increases by 2%.If prices (both domestic and foreign do not change) ,we know that

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

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Definitions:

Irreversibility

A concept in cognitive development where the understanding that certain processes cannot be undone or returned to their original state is lacking.

Noncorporeal Continuation

The view that some form of life and personal continuity exists after the physical body has died.

Biological Causality

The study of biological processes and phenomena and their causes and effects.

Advance Directives

Legal documents that allow individuals to outline their preferences for medical treatment and care in the event that they become unable to communicate their decisions.