Multiple Choice
Assuming the United States is the "domestic" country,if the real exchange rate between the United States and France increases from 1.5 to 1.8
A) the prices of U.S.goods and services have increased by 53% relative to France.
B) the prices of U.S.goods and services have increased by 3% relative to France.
C) the prices of U.S.goods and services have decreased by 16% relative to France.
D) the prices of U.S.goods and services have increased by 20% relative to France.
Correct Answer:

Verified
Correct Answer:
Verified
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