Assume that at the beginning of 2012,1 dollar could be traded for 5 yuan.If in 2013,1 dollar was being traded for 6 yuan,it can be concluded that ________.
A) the dollar depreciated against the yuan and the yuan appreciated against the dollar in 2013
B) the dollar appreciated against the yuan and the yuan depreciated against the dollar in 2013
C) the nominal exchange rate did not change in 2013
D) the real exchange rate changed in 2013, assuming PPP holds
Correct Answer:
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