Multiple Choice
What is the real exchange rate?
A) It is the ratio of the domestic cost of a foreign basket of products compared with the cost of the same domestic basket of products.
B) It is the exchange rate minus the rate of domestic inflation.
C) It is the exchange rate plus the rate of domestic inflation.
D) It is the original exchange rate that was in effect when the nations were on a gold standard.
Correct Answer:
Verified
Correct Answer:
Verified
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