Other things the same,the real exchange rate between U.S.and South African goods would be higher if
A) prices in the U.S.were higher,or the number of South African rand the dollar purchased were higher.
B) prices in the U.S.were higher,or the number of South African rand the dollar purchased were lower.
C) prices in the U.S.were lower,or the number of South African rand the dollar purchased were higher.
D) prices in the U.S.were lower,or the number of South African rand the dollar purchased were lower.

Question

Quizplus · Accepted Answer

The real exchange rate increases if U.S. prices rise or if the dollar appreciates, meaning it buys more South African rand.

Other Things the Same,the Real Exchange Rate Between U