Given the Canadian Price Level P, the Foreign Country Price

question 67

Multiple Choice

Given the Canadian price level P, the foreign country price level P*, and the nominal exchange rate E in foreign currency per Canadian dollar, the real exchange rate RER equals

• A)P × E × P*.
• B)P × E/P*).
• C)E × P*/P).
• D)P/P*)/ E.
• E)E × P/P*).

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