If the US Real Exchange Rate Is Greater Than 1, Then There

question 6

True/False

If the U.S. real exchange rate is greater than 1, then there is the possibility of arbitraging by buying foreign goods to sell in the U.S.

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Definitions:

Torque Decreases

A condition where the force that causes rotation around an axis reduces, often affecting machinery performance.

Torque Increases

The enhancement of the turning force exerted by an engine or motor, improving the vehicle's ability to accelerate and maintain speed.

Automatic Transmission

A type of transmission in vehicles that automatically changes gear ratios as the vehicle moves, allowing the driver to focus on steering and acceleration without manual gear shifting.

4WD Vehicles

Vehicles equipped with a four-wheel-drive system that can provide power to all four wheels simultaneously, offering better traction in off-road or adverse conditions.