Open Economy Macroeconomics Assessment
Module 3 • 10 Questions
Question 1 of 10
0 of 10 answered
If the rupee price of one US dollar rises from 82 to 86, and the exchange rate is defined as rupees per dollar, which statement is correct?
A
The rupee appreciates because it now takes more rupees to buy a dollar.
B
The dollar depreciates because its rupee price has increased.
C
The dollar appreciates and the rupee depreciates.
D
Neither currency changes value because only real exchange rates can move.