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A decrease in the value of the domestic currency in terms of the foreign currency means that ________.

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A decrease in the value of the domestic currency in terms of the foreign currency means that ________.

A decrease in the value of the domestic currency in terms of the foreign currency means that ________.

▸ the domestic currency has depreciated and the nominal exchange rate has fallen

▸ the domestic currency has appreciated and the nominal exchange rate has fallen

▸ the domestic currency has depreciated and the nominal exchange rate has risen

▸ the domestic currency has appreciated and the nominal exchange rate has risen

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Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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