When the nominal exchange rate rises
A)the domestic currency buys more units of foreign currency,and the domestic currency has depreciated.
B)the domestic currency buys fewer units of foreign currency,and the domestic currency has depreciated.
C)the domestic currency buys more units of foreign currency,and the domestic currency has appreciated.
D)the domestic currency buys fewer units of foreign currency,and the domestic currency has appreciated.

Question

Quizplus · Accepted Answer

When the nominal exchange rate rises, it means that the domestic currency has appreciated, as it now buys more units of the foreign currency than before.

When the Nominal Exchange Rate Rises