How Does an Increase in the Relative Price of a Country's

question 55

Multiple Choice

How does an increase in the relative price of a country's goods in terms of foreign goods,or real exchange rate,affect its balance of trade?

• A)An increase in the real exchange rate raises imports,reduces exports,and reduces the balance of trade.
• B)An increase in the real exchange rate reduces imports,raises exports,and reduces the balance of trade.
• C)An increase in the real exchange rate reduces imports,raises exports,and increases the balance of trade.
• D)An increase in the real exchange rate raises imports,reduces exports,and increases the balance of trade.

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Definitions:

Hydrogen Bonds

Weak bonds between partially positive hydrogen atoms and partially negative elements like oxygen or nitrogen, crucial in biological structures.

pH Scale

A measure of the acidity or basicity of an aqueous solution, ranging from 0 (most acidic) to 14 (most basic) with 7 as neutral.

Hydrogen Ion

A positively charged ion or proton, H+, which is common in acid-base reactions in chemistry and biological systems.

Structural Organization

Refers to the way in which different parts of an organism or system are arranged and work together.