What Is the Real Exchange Rate Equal To

question 72

Multiple Choice

What is the real exchange rate equal to?

• A) the relative price of domestic and foreign currency
• B) the relative price of domestic and foreign goods
• C) the ratio between the domestic and foreign interest rates
• D) the nominal exchange rate minus the inflation rate

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Definitions:

Alternate Form Reliability

A measure of reliability used to assess the consistency of test scores between different versions of the same test.

Test-retest Reliability

Test-retest reliability is a measure of consistency where the same test is administered to the same group of people at different times to assess the reliability over time.

Construct Validity

The extent to which a test or instrument accurately measures the theoretical, non-observable constructs it is designed to assess.

Predictive Validity

The degree to which a measurement or test score forecasts future results on a connected outcome.