When the ratio of domestic prices to foreign prices rises:
A) the real exchange rate depreciates.
B) the real exchange rate appreciates only when the nominal exchange rate appreciates.
C) the real exchange rate appreciates only when the nominal exchange rate depreciates.
D) the real exchange rate appreciates even when the nominal exchange rate is constant.
D
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The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. The short-run macroeconomic equilibrium is a price level of ________ and a real GDP of ________
A) 90; $400 B) 100; $400 C) 110; $500 D) 120; $400
What does a balance of trade deficit imply?
a. exports of goods and services exceed imports of goods and services b. imports of goods and services exceed exports of goods and services c. investment income received from abroad exceeds investment income paid to foreigners d. investment income paid to foreigners exceeds investment income received from abroad e. investment by foreigners exceeds domestic investment in other countries