If the Mexican Nominal Exchange Rate Does Not Change, but Prices

question 364

Multiple Choice

If the Mexican nominal exchange rate does not change, but prices rise faster abroad than in Mexico, then the Mexican real exchange rate

• A)does not change.
• B)rises.
• C)declines.
• D)None of the above is necessarily correct.

---

Definitions:

Society

A structured community of people bound together by social relationships, sharing common cultures, institutions, and interests.

Impressionism

An art movement originating in France in the late 19th century, characterized by small, thin brush strokes, open composition, and emphasis on depicting the visual impression of the moment.

Barbizon Painters

A group of 19th-century French artists who worked in the village of Barbizon, known for their realistic landscapes that emphasized tonal qualities and the dramatic use of light.