An Increase in the Real Exchange Rate

question 74

Multiple Choice

An increase in the real exchange rate

• A) makes imports more expensive.
• B) makes imports less expensive.
• C) does not affect import values.
• D) always makes the number of imports rise.
• E) makes domestic consumers spend more on only foreign imports.

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Definitions:

Death Rates

The number of deaths per unit of population within a specified time period, often expressed per 1,000 or 100,000 individuals annually.

Economically

Pertaining to the management, production, and distribution of goods and services in a financial context.

Doubling Time

The period it takes for a quantity to double in size or value, often used in demography to describe the rate of population growth.

Population Growth

The increase in the number of individuals in a population, often measured by the rate at which the population is increasing.