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If the US dollar (US$) has appreciated against the UK pound (UK), and the nominal exchange rate is defined by E = US$/UK, what happens
If the US dollar (US$) has appreciated against the UK pound (UK), and the nominal exchange rate is defined by E = US$/UK, what happens to the real exchange rate (RER) in the short run after the appreciation of the US$?
a. RER increases and an increase in the competitiveness of the UK goods b. All of the answers here are incorrect c. RER decreases and an increase in the competitiveness of the US goods d. RER decreases and an increase in the competitiveness of the UK goods e. RER increases and an increase in the competitiveness of the US goods
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