If the Price Level in the U

question 46

Multiple Choice

If the price level in the U.S. is 120, the price level in South Africa is 140, and the nominal exchange rate is 7 South African rands per dollar, then the real exchange rate is

• A) 8.4 South African goods per U.S. good.
• B) 1.4 South African goods per U.S. good.
• C) 6 South African goods per U.S. good.
• D) 9.8 South African goods per U.S. good.

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Definitions:

Set Point

The desired or target value for a process variable in a control system.

Error Signal

A feedback signal indicating the difference between a desired setpoint and the actual output, used to correct system performance.

Proportional Gain

Proportional Gain is a parameter in PID control that determines the relationship between the magnitude of the error signal and the magnitude of the control variable.