Biology Forums - Study Force

Assume the nominal dollar-per-euro (/) exchange rate appreciates by 2, U.S. prices rise by 5 and Euro-Area prices rise by 3. By approximately how much does the real exchange rate change?
 a. 2
  b. There is no change.
  c. 3
  d. 4
  e. 5

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Question 2 - Assume the nominal dollar-per-euro (/) exchange rate appreciates by 2, U.S. prices rise by 5 and Euro-Area prices rise by 3. By approximately how much does the real exchange rate change?
 a. There is no change.
  b. 1
  c. 2
  d. 3
  e. 4

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Question 3 - Assume the nominal dollar-per-euro (/) exchange rate appreciates by 2, U.S. prices rise by 5 and Euro-Area prices rise by 3. By approximately how much does the real exchange rate change?
 a. 2
  b. 3
  c. 1
  d. There is no change.
  e. 5

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Question 4 - What happens when U.S. and U.K. prices remain unchanged but the U.S. dollar appreciates by 2 against the British pound?
 a. U.S. exports to the United Kingdom increase.
  b. U.S. net exports to the United Kingdom decrease.
  c. U.S. imports from the United Kingdom fall.
  d. U.S. net exports do not change because net exports are acyclical.

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