Consider an increase in a country’s technology such that the relative supply of domestic products increases. Then, Group of answer choices the real and nominal exchange rates of the domestic country appreciate the real exchange rate of the domestic country appreciates, but the change in the nominal exchange rate is not determined the real exchange and nominal exchange rates of the domestic country depreciate the real exchange rate of the domestic country depreciates, but the change in the nominal exchange rate cannot be determined
Consider an increase in a country’s technology such that the relative supply of domestic products increases. Then, Group of answer choices the real and nominal exchange rates of the domestic country appreciate the real exchange rate of the domestic country appreciates, but the change in the nominal exchange rate is not determined the real exchange and nominal exchange rates of the domestic country depreciate the real exchange rate of the domestic country depreciates, but the change in the nominal exchange rate cannot be determined
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider an increase in a country’s technology such that the relative supply of domestic products increases. Then,
Group of answer choices
the real and nominal exchange rates of the domestic country appreciate
the real exchange rate of the domestic country appreciates, but the change in the nominal exchange rate is not determined
the real exchange and nominal exchange rates of the domestic country depreciate
the real exchange rate of the domestic country depreciates , but the change in the nominal exchange rate cannot be determined
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