Multiple Choice
A depreciation of the real exchange rate (as defined in the Australian model) means that the:
A) price of tradables rises relative to the price of nontradables.
B) price of tradables fall relative to the price of nontradables.
C) official exchange rate (defined as local currency per unit of foreign currency) falls.
D) official exchange rate rises more slowly than the average price of nontradables.
Correct Answer:
Verified
Correct Answer:
Verified
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