If the Nominal Exchange Rate E Is Foreign Currency Per

question 121

Multiple Choice

If the nominal exchange rate e is foreign currency per dollar, the domestic price is P, and the foreign price is P*, what is the definition of the real exchange rate?

• A) e(P*/P)
• B) e(P/P*)
• C) e + P/P
• D) e - P/P*

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Sole Proprietorship

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