When a Country's Real Exchange Rate Appreciates

question 97

Multiple Choice

When a country's real exchange rate appreciates,

• A)its nominal exchange rate must also have appreciated.
• B)its nominal exchange rate must have depreciated.
• C)it can trade its goods for fewer units of foreign goods.
• D)it can trade its goods for more units of foreign goods.

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Definitions:

Rule

A prescribed guideline for conduct or action established by an authority, which governs behavior within specific contexts.

Morality

Norms that identify the difference between laudable and blameworthy habits.

Summun Bonum

A Latin term meaning the highest or supreme good, often used in ethical, philosophical, and metaphysical contexts to denote the ultimate importance or aim.

Moral Action

An act undertaken based on one’s understanding of right and wrong, intending to achieve a morally good outcome.