If nominal exchange rates do not change,an increase in the U.S.price level relative to the foreign price level represents a real appreciation of the dollar.However,if nominal exchange rates can change,is an increase in U.S.inflation relative to foreign inflation likely to cause appreciation of the dollar in the short run?

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The Answer of If nominal exchange rates do not change,an increase in the U.S.price level relative to the foreign price level represents a real appreciation of the dollar.However,if nominal exchange rates can change,is an increase in U.S.inflation relative to foreign inflation likely to cause appreciation of the dollar in the short run?

If Nominal Exchange Rates Do Not Change,an Increase in the U.S.price