Suppose That the Nominal Exchange Rate Is 120 Yen Per

question 153

Multiple Choice

Suppose that the nominal exchange rate is 120 yen per dollar,that the price of a basket of goods in the U.S.is $500 and the price of a basket of goods in Japan is 50,000 yen.Suppose that these values change to 100 yen per dollar,$600,and 70,000 yen.Then the real exchange rate would

• A) appreciate which by itself would make U.S.net exports fall.
• B) appreciate which by itself would make U.S.net exports rise.
• C) depreciate which by itself would make U.S.net exports fall.
• D) depreciate which by itself would make U.S.net exports rise.

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Definitions:

Receptor Sensitivity

involves the responsiveness of receptors, such as those in cells or sensory organs, to specific stimuli.

Stimulus Intensity

The magnitude of energy present in a stimulus, influencing the strength of the response.

Saturation

In color theory, describes the intensity or purity of a color; a fully saturated color has no addition of white, black, or gray.

Brightness

The perception of how light or dark a color appears; can also refer to the overall intensity of light sources.