When a Country's Real Exchange Rate Rises

question 30

Multiple Choice

When a country's real exchange rate rises:

• A) exports will decrease but imports will be unaffected.
• B) imports will decrease but exports will be unaffected.
• C) exports will increase and imports will decrease.
• D) exports will decrease and imports will increase.

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Definitions:

Herpangina

An acute viral illness often seen in children, characterized by fever, sore throat, and painful blisters on the throat and mouth.

Coronary Heart Disease (CHD)

Chronic illness that is a leading cause of death in the United States, occurring when the blood vessels that supply the heart with oxygen and nutrients are narrowed or closed by plaque, resulting in a myocardial infarction (heart attack) when closed completely.

Tuberculosis

A contagious illness resulting from the Mycobacterium tuberculosis bacterium, mainly targeting the lungs but capable of affecting other organs as well.

AIDS

Acquired Immune Deficiency Syndrome, a life-threatening condition caused by the Human Immunodeficiency Virus (HIV), leading to severe damage to the immune system.