Suppose country A pegs its nominal exchange rate to country B and that country A has a lower inflation rate than country B. In this situation, country A will experience
A) a real depreciation.
B) a better trade position.
C) a reduction in the real exchange rate.
D) all of the above
E) none of the above
D
Economics
You might also like to view...
It is possible to have a comparative advantage in producing a good or service without having an absolute advantage
Indicate whether the statement is true or false
Economics
The table above shows sales of the firms in the pet food industry. What type of market is this?
A) perfect competition B) monopolistic competition C) oligopoly D) monopoly
Economics