According to Purchasing-Power Parity What Should the Nominal Exchange Rate

question 80

Multiple Choice

According to purchasing-power parity what should the nominal exchange rate between the U.S.and another country be equal to?

• A)1
• B)the real exchange rate between the U.S.and that country
• C)the price level in the U.S.divided by the price level in the other country
• D)the price level in the other country divided by the price level in the U.S.

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