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All of the Following Statements Are True About the Real

Question 44

Multiple Choice

All of the following statements are true about the real exchange rate, All of the following statements are true about the real exchange rate, = ,except A) a greater change in P (domestic price) compared to a change in P* (foreign price) necessitates a rise in the nominal rate, Rn, to keep the real rate unchanged. B) a pegged exchange rate system requires tight control of the money supply. C) there is a one-to-one correspondence between the real and nominal exchange rates. D) an expansionary monetary policy raises the real exchange rate. = All of the following statements are true about the real exchange rate, = ,except A) a greater change in P (domestic price) compared to a change in P* (foreign price) necessitates a rise in the nominal rate, Rn, to keep the real rate unchanged. B) a pegged exchange rate system requires tight control of the money supply. C) there is a one-to-one correspondence between the real and nominal exchange rates. D) an expansionary monetary policy raises the real exchange rate. All of the following statements are true about the real exchange rate, = ,except A) a greater change in P (domestic price) compared to a change in P* (foreign price) necessitates a rise in the nominal rate, Rn, to keep the real rate unchanged. B) a pegged exchange rate system requires tight control of the money supply. C) there is a one-to-one correspondence between the real and nominal exchange rates. D) an expansionary monetary policy raises the real exchange rate. ,except


A) a greater change in P (domestic price) compared to a change in P* (foreign price) necessitates a rise in the nominal rate, Rn, to keep the real rate unchanged.
B) a pegged exchange rate system requires tight control of the money supply.
C) there is a one-to-one correspondence between the real and nominal exchange rates.
D) an expansionary monetary policy raises the real exchange rate.

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