Assuming No Change in the Nominal Exchange Rate,how Will a Higher

question 182

Multiple Choice

Assuming no change in the nominal exchange rate,how will a higher rate of inflation in the United States relative to France affect the real exchange rate between the two countries? (Assume the United States is the "domestic" country.)

• A)The real exchange rate will rise.
• B)The real exchange rate will fall.
• C)The real exchange rate will be unaffected.
• D)The impact on the real exchange rate cannot be predicted.

---

Definitions:

Emerging Adulthood

A developmental phase characterized by transition and exploration in love, work, and worldviews, typically ranging from the late teens through the twenties.

Body Systems

Groups of bodily organs acting together to perform one or more functions, such as the digestive or nervous systems.

Identity

The qualities, beliefs, personality, looks, and/or expressions that make a person (self-identity) or group (particular social category or social group).

Erik Erikson

A developmental psychologist known for his theory on the psychosocial development of humans, identifying eight stages that span from infancy to adulthood.