The US nominal exchange rate declines

Reference no: EM13802525

EXPLAIN IF POSSIBLE. What is happening to the US real exchange rate in each of the following situations? Explain.

a. The US nominal exchange rate is unchanged, but prices rise more abroad than in the US.

b. The US nominal exchange rate declines, and prices rise less in the US than abroad.

c. The US nominal exchange rate increases, and prices are unchanged in the US or abroad.

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