If the Kenyan nominal exchange rate declines, and prices are unchanged in Kenya and abroad, then the Kenyan real exchange rate
a. does not change.
b. rises.
c. declines
d. None of the above is necessarily correct.
c
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Domestic producers of a good become worse off, and domestic consumers of a good become better off, when a country begins allowing international trade in that good and
a. the country becomes an importer of the good as a result. b. the world price exceeds the domestic price of the good that prevailed before international trade was allowed. c. the country in question has a comparative advantage, relative to other countries, in producing the good. d. total surplus does not change as a result.
A strategic trade policy of questionable success was
A. Japan's elimination of tariffs on rice imports. B. Iraq withholding oil from the world market. C. Britain and France subsidizing AIRBUS. D. U.S. consideration of legalizing marijuana.