Assume That the Price Levels in Two Countries Are Constant

question 7

Multiple Choice

Assume that the price levels in two countries are constant.In this situation,we know that

• A)neither the real nor the nominal exchange rate can change.
• B)the real exchange rate can change, while the nominal exchange rate is constant.
• C)the nominal exchange rate can change, while the real exchange rate is constant.
• D)the real and nominal exchange rate must move together, changing by the same percentage.
• E) the nominal exchange rate will fluctuate more widely than the real exchange rate.

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Definitions:

Phenotypes

The observable physical or biochemical characteristics of an organism, as determined by both genetic makeup and environmental influences.

Dominant Allele

Allele that exerts its phenotypic effect in the heterozygote; it masks the expression of the recessive allele.

Gene Locus

The specific fixed position on a chromosome where a particular gene or genetic marker is located, essential in genetics for identifying gene variations.

Tongue Rolling

The ability to roll the tongue into a U-shape, considered to be a genetic trait.