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    Principles of Macroeconomics Study Set 8
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    Exam 19: A Macroeconomic Theory of the Open Economy: Supply and Demand for Loanable Funds and for Foreign-Currency Exchange
  5. Question
    The Real Exchange Rate Measures the
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The Real Exchange Rate Measures the

Question 84

Question 84

Multiple Choice

The real exchange rate measures the


A) price of domestic currency relative to foreign currency.
B) price of domestic goods relative to the price of foreign goods.
C) rate of domestic and foreign interest.
D) None of the above is correct.

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