A Nominal Exchange Rate

question 259

Multiple Choice

A nominal exchange rate:

• A) takes the price level of both countries into account.
• B) is equal to e_r * [P_d / P_f].
• C) is the price of one country's currency for another's.
• D) is usually the same as the real exchange rate.

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Definitions:

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The idea or belief in a fundamental and underlying connection among all things in the universe.

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