What is happening to the U.S. real exchange rate in each of the following situations? Explain. a.

Question:

What is happening to the U.S. real in each of the following situations? Explain.
a. The U.S. nominal is unchanged, but prices rise faster in the United States than abroad.
b. The U.S. nominal is unchanged, but prices rise faster abroad than in the United States.
c. The U.S. nominal declines and prices are unchanged in the United States and abroad.
d. The U.S. nominal declines, and prices rise faster abroad than in the United States.

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...