For a given nominal exchange rate and foreign price level,a decrease in the domestic price level __________ the real exchange rate.
A) increases
B) decreases
C) may either increase or decrease
D) does not change
E) offsets any change in
Correct Answer:
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Q166: A flexible exchange rate _ the impact
Q167: A rise in the real exchange rate
Q168: For a given nominal exchange rate and
Q169: A decrease in the real exchange rate
Q170: A fall in the real exchange rate
Q172: A fixed exchange rate _ policymakers from
Q173: A disposable camera cost $12 in Canada
Q174: The price of the average domestic good
Q175: An increase in the real exchange rate
Q176: Policy-makers are _ using monetary policy to
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