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    Macroeconomics Study Set 10
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    Exam 13: Exchange Rates, business Cycles, and Macroeconomic Policy in the Open Economy
  5. Question
    If the Real Exchange Rate Rises 4%,domestic Inflation Is 2%,and
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If the Real Exchange Rate Rises 4%,domestic Inflation Is 2%,and

Question 9

Question 9

Multiple Choice

If the real exchange rate rises 4%,domestic inflation is 2%,and foreign inflation is 0%,what is the percent change in the nominal exchange rate?


A) 6%
B) 4%
C) 2%
D) 0%

Correct Answer:

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