Other things the same, an increase in the foreign price level leads to an increase in the real exchange rate

When the economy is at full employment the unemployment rate equals the natural unemployment rate

Indicate whether the statement is true or false

Free-floating exchange rates are determined by the

A. policies of the domestic government. B. policies of foreign governments. C. forces of demand and supply in the foreign exchange market. D. forces of demand and supply in the domestic money market.