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

Multiple Choice

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

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