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    If the Nominal Exchange Rate E Is Foreign Currency Per
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If the Nominal Exchange Rate E Is Foreign Currency Per

Question 151

Question 151

Multiple Choice

If the nominal exchange rate e is foreign currency per dollar, the domestic price is P, and the foreign price is P*, then the real exchange rate is defined as


A) (eP*) /P.
B) (eP) /P*.
C) e + P*/P.
D) e − P/P*.

Correct Answer:

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