Multiple Choice
During 2011,the price level in the U.S.rose at a faster rate than the price level in Japan.Other things the same,according to purchasing-power parity,this difference in inflation rates should have caused
A) the nominal exchange rate of the dollar to appreciate relative to the yen.
B) the real exchange rate of the dollar to appreciate relative to the yen.
C) the nominal exchange rate of the dollar to depreciate relative to the yen.
D) the real exchange rate of the dollar to depreciate relative to the yen.
Correct Answer:

Verified
Correct Answer:
Verified
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