If a Proportion of Traded Goods (Such as Oil) Are

question 112

Multiple Choice

If a proportion of traded goods (such as oil) are priced in a foreign currency, the real exchange rate becomes:

• A) lower.
• B) higher.
• C) less responsive to changes in the nominal exchange rate.
• D) more responsive to changes in the nominal exchange rate.

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Definitions:

Personal Property

Property that is not attached to real estate and includes tangible items like cars, furniture, and personal belongings.

Possessing

The act of having physical control or ownership of an object or property.

Hotel Operators

Individuals or companies responsible for running a hotel, including managing its daily operations and services provided to guests.

Personal Property

Assets or belongings that are movable and not fixed to one location, unlike real estate.