Which of the following would not cause the real exchange rate to rise?
A) a rise in the exchange rate, E
B) depreciation of the home currency
C) a right shift of the aggregate demand curve
D) a rise in foreign prices, P
E) a fall in domestic prices, P

Question

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The Answer of Which of the following would not cause the real exchange rate to rise?
A) a rise in the exchange rate, E
B) depreciation of the home currency
C) a right shift of the aggregate demand curve
D) a rise in foreign prices, P
E) a fall in domestic prices, P

Which of the Following Would Not Cause the Real Exchange