Suppose the Nominal Exchange Rate Rises from 82 to 90

question 43

Multiple Choice

Suppose the nominal exchange rate rises from 82 to 90.The domestic currency has appreciated by ________ percent.

• A)ten
• B)nine
• C)eight
• D)86

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Definitions:

National Income

The total amount of money earned within a country from the production of goods and services over a specific period.

Profits

The financial gain that is achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Intermediate Products

Goods that are used as inputs in the production of other goods, including raw materials, unfinished goods, and semi-finished goods.

Economic Well-Being

A measurement of how well individuals or societies can satisfy their needs and wants, typically assessed by factors like income, employment, and access to goods and services.