Other Things the Same,an Increase in the Foreign Price Level

question 53

Multiple Choice

Other things the same,an increase in the foreign price level

• A)reduces the real exchange rate.This reduction could be offset by a decrease in the domestic price level.
• B)reduces the real exchange rate.This reduction could be offset by an increase in the domestic price level.
• C)increases the real exchange rate.This increase could be offset by a decrease in the domestic price level.
• D)increases the real exchange rate.This increase could be offset by an increase in the domestic price level.

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Definitions:

Plantar Flexion

A movement of the foot that increases the angle between the shin and the top of the foot, as seen when standing on tiptoe.

Popliteus

A small muscle located at the back of the knee joint, crucial for initiating knee flexion.

Tibialis Posterior

A muscle in the leg that supports the arch of the foot and aids in walking by controlling plantar flexion and inversion of the foot.

Fibularis Brevis

A muscle of the lower leg that contributes to the eversion and plantarflexion of the foot.