Concerning the Exchange Rate Index of the U

Multiple Choice

Concerning the exchange rate index of the U.S.dollar, suppose that the dollar's real exchange rate index falls from 125 to 110.This means that

A) U.S. goods are less competitive on foreign markets.
B) U.S. goods are more competitive on foreign markets.
C) the dollar has appreciated against the currencies of its major trading partners.
D) U.S. price levels are identical to its trading partners.