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The Real Exchange Rate Is

Question 416

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The real exchange rate is


A) the relative price of U.S. produced goods to foreign produced goods.
B) the nominal exchange rate multiplied by the ratio of the foreign price level to the U.S. price level.
C) the money price of foreign produced goods relative to the money price of U.S. produced goods.
D) a measure of how much currency exchanges for a unit of another currency.

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