Assume That the Price Levels in Two Countries Are Constant

question 7

Multiple Choice

Assume that the price levels in two countries are constant.In this situation,we know that

• A)neither the real nor the nominal exchange rate can change.
• B)the real exchange rate can change, while the nominal exchange rate is constant.
• C)the nominal exchange rate can change, while the real exchange rate is constant.
• D)the real and nominal exchange rate must move together, changing by the same percentage.
• E) the nominal exchange rate will fluctuate more widely than the real exchange rate.

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Definitions:

BPI

Stands for Business Process Improvement, a systematic approach to help an organization optimize its underlying processes to achieve more efficient results.

Six Sigma

A data-driven approach and methodology for eliminating defects and improving processes in manufacturing and business operations.

Holistic Approach

An approach that considers the whole of a system or entity, rather than focusing on its parts separately, emphasizing the interdependence of those parts.

BPR

Business Process Reengineering, a strategy for making an organization's workflows more efficient and effective.