Use the Following to Answer Questions

question 414

Multiple Choice

Use the following to answer questions:
Suppose that initially the nominal exchange rate was 40 rupees per dollar,but it is now 50 rupees per dollar.
-(Scenario: Exchange Rate between Canada and India) Refer to Scenario: Exchange Rate between Canada and India.If the nominal exchange rate is 50 rupees per dollar and the inflation rate in India is 25%,while the aggregate price level has remained unchanged in Canada,the real exchange rate between the Canadian dollar and the Indian rupee:

• A) remains unchanged at 40.
• B) remains unchanged at 50.
• C) increases from 40 to 50.
• D) increases by more than 25%.

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Definitions:

Infected Population

The segment of a community or species that is currently suffering from an infectious disease.

Single-Parent Homes

Households where children are raised by only one parent, either due to separation, divorce, widowhood, or by choice.

College Education

A post-secondary education offered by colleges and universities, leading to an associate's, bachelor's, master's, or doctoral degree.

Two-Parent Homes

Households where children live with both of their biological or adoptive parents.