When the Nominal Exchange Rate Falls

Multiple Choice

When the nominal exchange rate falls

A) the domestic currency buys more units of foreign currency and the domestic currency has depreciated.
B) the domestic currency buys fewer units of foreign currency and the domestic currency has depreciated.
C) the domestic currency buys more units of foreign currency and the domestic currency has appreciated.
D) the domestic currency buys fewer units of foreign currency and the domestic currency has appreciated.