A Fall in the Euro's Nominal Exchange Rate in Terms

Multiple Choice

A fall in the euro's nominal exchange rate in terms of US dollars

A) will always lead to a fall in the real exchange rate of the euro in terms of US dollars.
B) may be offset by a rise in the price level in the eurozone so that the real exchange rate of the euro in terms of US dollars is unchanged.
C) will always make US imports into the eurozone countries more expensive relative to goods produced in the eurozone.
D) may make the eurozone a less affordable holiday destination for US residents.