Multiple Choice
According to purchasing-power parity,which of the following necessarily equals the ratio of the foreign price level divided by the domestic price level?
A) the real exchange rate,but not the nominal exchange rate
B) the nominal exchange rate,but not the real exchange rate
C) the real exchange rate and the nominal exchange rate
D) neither the real exchange rate nor the nominal exchange rate
Correct Answer:
Verified
Correct Answer:
Verified
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