Suppose that the real exchange rate between Canada and
Tanzania is defined in terms of baskets of goods. What will
increase the real exchange rate (that is, increase the number of
baskets of Tanzanian goods a basket of Canadian goods
buys)?
a. an
increase in the number of Tanzanian shillings that can be purchased
with a dollar for me
b. an
increase in the price in Canadian dollars of Tanzanian
goods
c. an
increase in the price in Tanzanian shillings of Tanzanian
goods
d. a
decrease in the number of Tanzanian shillings that can be purchased
with a dollar
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