Which of the following, all else fixed, will cause the real exchange rate to decrease?
A) a nominal appreciation
B) an increase in the foreign price level
C) an increase in the domestic price level
D) all of the above
E) none of the above
B
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Consider the market for Hewlett-Packard printers, depicted in the figure to the right, where the supply of HP printers has increased from S1 to S2. What would cause the supply curve for HP printers to shift to the right?
A. a decrease in the price of a substitute in production B. a decrease in the price of an input C. a higher expected future price for HP printers D. both A and B E. all of the above
In utilizing unconventional monetary policy in 2009, the Federal Reserve purchased
a. real estate worth more than $2 trillion. b. $800 billion in Treasury bills. c. over $1 trillion in mortgage backed securities. d. $600 billion in long-term Treasury bonds.