How do nominal exchange rates change over time?
A) They vary little over time.
B) They vary substantially over time.
C) They appreciate over time for most countries.
D) They depreciate over time for most countries.

Question

Quizplus · Accepted Answer

Nominal exchange rates can vary substantially over time due to changes in factors such as inflation rates, interest rates, economic growth, and political factors. While there may be periods of stability, overall there tends to be significant fluctuations in nominal exchange rates.

How Do Nominal Exchange Rates Change Over Time