The lower the value of the ______________________, the ___________ U.S.-made goods are to foreigners.
A) real interest rate; cheaper
B) real exchange rate; cheaper
C) real exchange rate; more expensive
D) real interest rate; more expensive.

Question

Quizplus · Accepted Answer

The real exchange rate is the price of U.S.-made goods in terms of foreign goods. A lower real exchange rate means that U.S.-made goods are cheaper to foreigners.

The Lower the Value of the ______________________, the ___________ U

The Lower the Value of the ____________, the _ U