試題詳解

17 If the price level increases 10% in Taiwan and the price level increases 5% in the US in a year. According to relative purchasing power parity, what does the nominal exchange rate of NT dollars to US dollars move in the year?
(A) It depreciates 5%.
(B) It appreciates 5%.
(C) It depreciates 100%.
(D) It appreciates 100%.