Concerning the exchange rate index of the U.S. dollar, suppose that the dollar's real exchange rate index rises from 95 to 115. This means that

a. the dollar has depreciated against the currencies of its major trading partners.
b. the dollar has appreciated against the currencies of its major trading partners.
c. the dollar's nominal exchange rate index falls.
d. the dollar's nominal exchange rate index remains constant.


b. the dollar has appreciated against the currencies of its major trading partners.

Business

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