If the nominal exchange rate does not change, but U.S. prices rise, the real exchange rate has ________, and U.S. imports are likely to ________

A) increased; rise
B) increased; fall
C) decreased; rise
D) decreased; fall

C

Economics

You might also like to view...

Going from M0 to M1 and to M2, what is the principle?

A) from household money demand to firm money demand B) from illiquid to liquid C) from most usable to least usable for transaction purposes D) from most usable to least usable as a store of value

Economics

The IMF comprises of 50 member countries including all developed countries, and a few countries of Asia and Latin America

a. True b. False Indicate whether the statement is true or false

Economics