An increase in the real exchange rate indicates that:
A) domestic goods are now relatively more expensive.
B) domestic goods are now relatively cheaper.
C) foreign goods are now relatively cheaper.
D) Both A and C.
E) Both B and C.

Question

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The Answer of An increase in the real exchange rate indicates that:
A) domestic goods are now relatively more expensive.
B) domestic goods are now relatively cheaper.
C) foreign goods are now relatively cheaper.
D) Both A and C.
E) Both B and C.

An Increase in the Real Exchange Rate Indicates That