Multiple Choice
The real exchange rate using the CPI measures:
A) the nominal exchange rate minus inflation
B) the price of a basket of goods and services available domestically relative to a basket of goods and services available abroad
C) the price of a basket of goods and services available domestically relative to a different basket of goods and services available domestically
D) the price of a domestic good relative to the same foreign good
Correct Answer:
Verified
Correct Answer:
Verified
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