The % increase in the nominal exchange rate equals the % increase in the real exchange rate _________ the __________ inflation rate _________ the __________ inflation rate. A) plus / foreign / minus / domestic B) minus / foreign / minus / domestic C) plus / domestic / minus / foreign D)minus / domestic / plus / foreign  E) plus / domestic / plus / foreign

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter6: Managing In The Global Economy
Section: Chapter Questions
Problem 12E
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The % increase in the nominal exchange rate equals the % increase in the real exchange rate _________ the __________ inflation rate _________ the __________ inflation rate.

A) plus / foreign / minus / domestic

B) minus / foreign / minus / domestic

C) plus / domestic / minus / foreign

D)minus / domestic / plus / foreign 

E) plus / domestic / plus / foreign

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