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:

Family And Medical Leave Act

A U.S. federal law requiring covered employers to provide employees with job-protected and unpaid leave for qualified medical and family reasons.

Health-Care Coverage

A contract by which an insurance company agrees to cover part or all of a person's medical expenses in exchange for a premium.

Fair Labor Standards Act

U.S. legislation that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week. It also prohibits most employment of minors in "oppressive child labor".

Hazardous Occupation

A job or profession that poses significant risks to the safety and health of the workers.