Other things the same,the real exchange rate between U.S.and Belgian goods would be higher if
A)prices in the U.S.were higher,or the number of euro the dollar purchased were higher.
B)prices in the U.S.were higher,or the number of euro the dollar purchased were lower.
C)prices in the U.S.were lower,or the number of euro the dollar purchased were higher.
D)prices in the U.S.were lower,or the number of euro the dollar purchased were lower.

Question

Other things the same,the real exchange rate between U.S.and Belgian goods would be higher if
A)​prices in the U.S.were higher,or the number of euro the dollar purchased were higher.
B)​prices in the U.S.were higher,or the number of euro the dollar purchased were lower.
C)​prices in the U.S.were lower,or the number of euro the dollar purchased were higher.
D)​prices in the U.S.were lower,or the number of euro the dollar purchased were lower.

Quizplus · Accepted Answer

The real exchange rate increases if U.S. prices rise or if the dollar appreciates, meaning it buys more euros.

Other Things the Same,the Real Exchange Rate Between U