Multiple Choice
Other things the same,if the U.S.price level falls,then
A) U.S.residents want to buy more foreign bonds.The real exchange rate rises.
B) U.S.residents want to buy more foreign bonds.The real exchange rate falls.
C) U.S.residents want to buy fewer foreign bonds.The real exchange rate rises.
D) U.S.residents want to buy fewer foreign bonds.The real exchange rate falls.
Correct Answer:
Verified
Correct Answer:
Verified
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