A decrease in the nominal exchange rate, e, defined as the number of units of the foreign currency that one unit of the domestic currency will buy, indicates that the domestic currency has ________ relative to the foreign currency.
A)appreciated
B)depreciated
C)become overvalued
D)become undervalued

Question

Quizplus · Accepted Answer

When the nominal exchange rate falls, the domestic currency becomes weaker and has depreciated.

A Decrease in the Nominal Exchange Rate, E, Defined as the Number