Which of the following will increase the real exchange rate (that - ProProfs Discuss
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Which of the following will increase the real exchange rate (that is, increase the number of bottles of Russian vodka per bottle of U.S. vodka)? Suppose the real exchange rate between Russia and the United States is defined in terms of bottles of Russian vodka per bottle of U.S. vodka. 



A. A decrease int he ruble price of Russian vodka
B. An increase in the dollar price of U.S. vodka
C. An increase in the number of rubles for which the dollar can be exchanged
D. All of the above will increase the real exchange rate
E. None of the above will increase the real exchange rate

This question is part of Macroeconomics [Ch. 1
Asked by Emy_, Last updated: Mar 12, 2020

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1 Answer

John Smith

John Smith

Answered Mar 29, 2017

All of the above will increase the real exchange rate
 

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