If the Real Exchange Rate Rises 2%,domestic Inflation Is 3%,and

question 81

Multiple Choice

If the real exchange rate rises 2%,domestic inflation is 3%,and foreign inflation is 1%,what is the percent change in the nominal exchange rate?

• A)6%
• B)4%
• C)2%
• D)0%

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Definitions:

Direct Method

A cash flow statement preparation method that lists major categories of gross cash receipts and payments, directly showing sources and uses of cash.

Step-Down Method

An allocation method used in cost accounting to allocate service department costs to production departments in a sequential manner based on certain criteria.

Custodial Services

Services provided by companies or individuals focusing on the cleaning and maintenance of buildings or properties.

Maintenance

Activities and practices aimed at keeping equipment, systems, or infrastructure in working condition and preventing failures.