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The US Dollar Exchange Rate, E, Where E Is the Nominal

Question 103

Multiple Choice

The U.S. dollar exchange rate, e, where e is the nominal exchange rate expressed as Japanese yen per U.S. dollar, will appreciate when:


A) real GDP in the U.S. increases.
B) real GDP in Japan increases.
C) the U.S. Federal Reserve eases monetary policy.
D) U.S. consumers increase their preference for Japanese cars.

Correct Answer:

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