Holding everything else constant, the U.S. real exchange rate with Thailand will increase if the dollar depreciates.

Question

Quizplus · Accepted Answer

A depreciation of the dollar means it loses value relative to other currencies, making U.S. goods cheaper for foreigners, including those in Thailand. This would typically lead to a decrease in the real exchange rate, not an increase, as the real exchange rate adjusts to reflect the dollar's lower value.

Holding Everything Else Constant, the U