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A currency will undergo a real depreciation Group of answer choices A If domestic inflation is 5%, foreign inflation is 3%, and there is a

A currency will undergo a real depreciation

Group of answer choices

A If domestic inflation is 5%, foreign inflation is 3%, and there is a 1% nominal appreciation.

B If there is an increase in the trade weighted index.

C If there is a decrease in the trade weighted index.

D If domestic inflation is 3%, foreign inflation is 5%, and there is a 1% nominal appreciation.

E If domestic inflation is 5%, foreign inflation is 3%, and there is a 1% nominal depreciation.

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