The sensitivity of a country's imports is _____ related to the real exchange rate.
A) directly
B) inversely
C) not
D) infrequently
E) indirectly

Name: The sensitivity of a country's imports is _____ related to the real exchange rate. A) directly B) inversely C) not D) infrequently E) indirectly
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Question

Quizplus · Accepted Answer

The sensitivity of a country's imports is inversely related to the real exchange rate. This is because a higher real exchange rate makes imports more expensive, which reduces the quantity of imports demanded.

The Sensitivity of a Country's Imports Is _____ Related to the Real