If the nominal exchange, defined as the number of units of domestic currency per unit of foreign currency, decreases, then the domestic currency has (been considered):
A)appreciated
B)depreciated
C)overvalued
D)undervalued

Question

Quizplus · Accepted Answer

When the nominal exchange rate decreases, it means fewer units of domestic currency are needed to purchase a unit of foreign currency, indicating that the domestic currency has appreciated in value.

If the Nominal Exchange, Defined as the Number of Units