When a Country's Real Exchange Rate Appreciates

question 97

Multiple Choice

When a country's real exchange rate appreciates,

• A)its nominal exchange rate must also have appreciated.
• B)its nominal exchange rate must have depreciated.
• C)it can trade its goods for fewer units of foreign goods.
• D)it can trade its goods for more units of foreign goods.

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Definitions:

Computerized Axial Tomography

A medical imaging technique that uses X-rays to create detailed cross-sectional images of the body, commonly known as a CAT scan.

Electroencephalography

A non-invasive procedure that records electrical activity of the brain using sensors placed on the scalp.

Magnetic Resonance Imaging

A medical imaging technique used in radiology to form pictures of the anatomy and the physiological processes of the body in both health and disease.

Polygraph Test

A test that seeks to determine whether the test taker is telling the truth by measuring physiological responses such as respiration level, perspiration level, and heart rate. Also known as a lie detector test.