An Increase in the Nominal Exchange Rate, E, Defined as the Number

question 18

Multiple Choice

An increase in the nominal exchange rate, e, defined as the number of units of the foreign currency that one unit of the domestic currency will buy, indicates that the domestic currency has ________ relative to the foreign currency.

• A)appreciated
• B)depreciated
• C)become overvalued
• D)become undervalued

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Definitions:

Subalternates

In logic, these refer to propositions that are related in such a way that the truth of one implies the truth of the other, but not necessarily vice versa.

Contradictories

In logic, statements that are in direct opposition to each other, where if one is true, the other must be false, and vice versa.

Converses

Statements in which the hypothesis and the conclusion (or subject and predicate) are switched in places.

Contrapositive

A logical statement formed by negating and swapping the positions of the hypothesis and conclusion of the converse of a conditional statement.