Given the U

Multiple Choice

Given the U.S. price level P, the foreign country price level P*, and the nominal exchange rate E expressed in foreign currency per U.S. dollar, the real exchange rate RER is given by

A) RER = E × (P/P*) .
B) RER = E × (P*/P) .
C) RER = (P/P*) / E.
D) RER = P / (E/P*) .