The Foreign Exchange Market Is the Market in Which ___________

The nominal exchange rate,e,is defined as the number of units of A) domestic goods relative to the number of units of foreign goods. B) foreign goods relative to the number of units of domestic goods. C) the foreign currency that the domestic currency will buy. D) the domestic currency that a foreign currency will buy. E) exported relative to the number of units imported.

When the nominal exchange increases from 78 yen per dollar to 80 yen per dollar,the dollar has A) appreciated. B) depreciated. C) become overvalued. D) become undervalued. E) been devalued.