Consider an Identical Basket of Goods in Both the U

Multiple Choice

Consider an identical basket of goods in both the U.S.and Taiwan.For a given nominal exchange rate,in which case is it certain that the U.S.real exchange rate with Taiwan falls?

A) the price of the basket of goods rises in the U.S.and Taiwan.
B) the price of the basket of goods rises in the U.S.and falls in Taiwan.
C) the price of the basket of goods falls in the U.S.and rises in Taiwan.
D) the price of the basket of goods falls in both the U.S.and Taiwan.