When the domestic currency buys fewer units of foreign currency, the
a. real exchange rate falls.
b. real exchange rate rises.
c. nominal exchange rate falls.
d. nominal exchange rate rises.
Answer: C
When the domestic currency buys fewer units of foreign currency, the
a. real exchange rate falls.
b. real exchange rate rises.
c. nominal exchange rate falls.
d. nominal exchange rate rises.
Answer: C