Which of the Following Would Not Cause the Real Exchange

question 60

Multiple Choice

Which of the following would not cause the real exchange rate to rise?

• A) a rise in the exchange rate, E
• B) depreciation of the home currency
• C) a right shift of the aggregate demand curve
• D) a rise in foreign prices, P
• E) a fall in domestic prices, P

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Definitions:

Central Cities

The core urban area of a metropolitan region, often containing the major economic, political, and cultural institutions of that region.

Annexed Outlying Areas

Territories that have been formally incorporated into a country or state but lie outside its primary geographical boundaries.

Ku Klux Klan

A secret society in the southern U.S. that focuses on white supremacy, white nationalism, and anti-immigration, notorious for its violence against African Americans and other groups.

Anti-Immigrant

A stance or policy that opposes immigration, often characterized by hostility towards immigrants and efforts to restrict their entry into a country.