The Answer to the Question of Whether or Not a U.S

question 15

Multiple Choice

The answer to the question of whether or not a U.S. dollar will buy more in the U.S. or in a foreign country is determined by:

• A) the nominal exchange rate.
• B) the real exchange rate.
• C) whether the nominal exchange rate is > or < than 1.
• D) you cannot determine the answer until you travel to the foreign country and convert U.S. dollars to the foreign currency.

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