A fall in consumer confidence results in:Nominal exchange rate decreasesReal exchange rate decreasesTrade Balance increasesA tax reform increasing the incentive for businesses to build new factories will result in:Nominal exchange rate increasesReal exchange rate increasesTrade balance decreasesConsumers preferring foreign cars over domestic cars will result in:Nominal exchange rate decreasesReal exchange rate decreasesTrade balance does not changeThe central bank doubling the money supply will result in:Nominal exchange rate does not changeReal exchange rate increasesTrade balance does not changeAn increase in the demand for money will result in:Nominal exchange rate increasesReal exchange rate does not changeTrade balance does not changeUS inflation and money growth increasedfrom 1960 until 1975, then decreased until 2000, then has been slowly increasingFigure
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