Multiple Choice
If purchasing power parity holds, the price level in the U.S. is 220, and the price level in Japan is 200, which of the following is true?
A) the real exchange rate is 200/220
B) the real exchange rate is 220/200
C) the nominal exchange rate is 200/220
D) the nominal exchange rate is 220/200
Correct Answer:
Verified
Correct Answer:
Verified
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