Assuming no change in the nominal exchange rate, how will a decrease in the price level in the United States relative to France affect the real exchange rate between the two countries? (Assume the United States is the "domestic" country.)
A) The real exchange rate will fall.
B) The real exchange rate will be unaffected.
C) The real exchange rate will rise.
D) The impact on the real exchange rate cannot be predicted.
A
Economics
You might also like to view...
Based on the graph for the Gini Coefficient, if income were distributed proportionally throughout a population, where would the Lorenz curve lie?
a. well below the line of perfect income equality
b. well above the line of perfect income equality
c. exactly along the line of perfect income equality
d. perpendicular to the line of perfect income equality
Economics
The unionization rate in the United States has been
A. Declining for over 40 years. B. Increasing for the last 5 years. C. Declining for approximately 15 years. D. Declining for approximately 30 years.
Economics