Other things the same, the real exchange rate between American and Chinese goods would be higher if
a. prices of Chinese goods were higher, or the number of yuan a dollar purchased was higher.
b. prices of Chinese goods were higher, or the number of yuan a dollar purchased was lower.
c. prices of Chinese goods were lower, or the number of yuan a dollar purchased was higher.
d. prices of Chinese goods were lower, or the number of yuan a dollar purchased was lower.
c
You might also like to view...
Specialization in trade will be economically efficient if it is based upon
A) national security needs. B) absolute advantage. C) comparative advantage. D) government regulations.
Which of the following is the best example of "creative destruction"?
a. The imprudent use of a credit card by a family that already has a high level of debt. b. The virtual elimination of the film camera by the digital camera. c. The failure of a business because of poor management. d. The failure of a business because of higher cost resulting from government regulation.