The Real and Nominal Exchange Rates Differ in the Sense

Multiple Choice

The real and nominal exchange rates differ in the sense that:

A) the real exchange rate does not express differences in the purchasing power of a currency.
B) the nominal exchange rate is adjusted for price differences between countries and the real is not.
C) the nominal exchange rate does not reflect differences in purchasing power between currencies.
D) nominal exchange rates are fixed but real rates are flexible.