An increase in the real exchange rate indicates that
A) domestic goods are now relatively cheaper.
B) domestic goods are now relatively more expensive.
C) foreign goods are now relatively cheaper.
D) both B and C
D
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Suppose a new employee is promised a pension payment of $8000 in the twenty-fourth year after joining the firm. The current pension contribution is $1200 a year. Assuming a six percent rate of return, their pension plan is said to be
A) fully funded. B) partly funded. C) unfunded. D) fully vested.
Which of the following is not true about the Consumer Price Index (CPI)?
a. The U.S. income tax system is indexed based on the CPI. b. The majority of labor union contracts have wages indexed by the CPI. c. The CPI can be used to transform nominal variables into real variables. d. The CPI can be used to measure the inflation rate. e. Social security benefits are indexed by the CPI.