Multiple Choice
According to purchasing-power parity what should the nominal exchange rate between the U.S.and another country be equal to?
A) 1
B) the real exchange rate between the U.S.and that country
C) the price level in the U.S.divided by the price level in the other country
D) the price level in the other country divided by the price level in the U.S.
Correct Answer:
Verified
Correct Answer:
Verified
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