In a Fixed Exchange Rate Regime, an Increase in the Price

Multiple Choice

In a fixed exchange rate regime, an increase in the price level will cause:

A) a real appreciation and no shift in the aggregate demand curve.
B) no change in the real exchange rate, and no change in aggregate demand.
C) a real depreciation and a rightward shift in the aggregate demand curve.
D) a real appreciation and a leftward shift in the aggregate demand curve.
E) a real depreciation and no shift in the aggregate demand curve.