How Does an Increase in the Real Exchange Rate Affect

question 19

Multiple Choice

How does an increase in the real exchange rate affect exports and imports?

• A)Exports increase;imports decrease.
• B)Exports decrease;imports increase.
• C)Exports increase;imports change ambiguously.
• D)Exports change ambiguously;imports decrease.
• E)Exports increase;imports are constant.

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Definitions:

Problem Solution

A method or process of solving an issue or overcoming a challenge.

Cultural-Familial Disability

Intellectual disabilities thought to arise from a combination of environmental and genetic factors, primarily within lower socio-economic groups.

Learning Disability

A disorder in one or more of the basic psychological processes involved in understanding or using language, spoken or written, which may manifest as an inability to read, write, spell, or do mathematical calculations.

Cognitive Disability

A limitation in intellectual functioning and adaptive behavior, affecting learning, communication, and independent living.