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:

Cytoplasm

The jelly-like substance inside a cell that contains organelles, providing a medium for metabolic activities.

Muscle Fiber

A single muscle cell, known for its elongated shape, that contracts to produce movement.

Potential Difference

The difference in electric potential between two points, resulting in the flow of current when a circuit is closed.

Permeability

A measure of how easily liquids or gases can pass through a material or membrane.