Suppose the nominal exchange rate - Canadian dollar per Brazilian real - is constant.If the price level in Brazil rises by four percent,while the price level in Canada rises by eight percent,then the real exchange rate - Brazilian goods for Canadian goods - has ________ by ________ percent.
A) declined;one-half
B) risen;one-half
C) risen;two
D) declined;four
Correct Answer:
Verified
Q9: A depreciation of the exchange rate is
Q10: An appreciation of the U.S.dollar will tend
Q11: The real exchange rate is equal to
Q12: An increase in the value of a
Q13: Since the early 1980s,the real exchange rate
Q15: The relative price of goods in two
Q16: The relative price of one currency in
Q17: A depreciation of the U.S.dollar will encourage,other
Q18: Suppose you reserve a hotel room in
Q19: The forward exchange rate is relevant to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents