The Real Exchange Rate Between U

question 57

Multiple Choice

The real exchange rate between U.S. dollars and the Japanese yens is the price of U.S. goods relative to the price of Japanese goods denominated in the U.S. dollar. If this real exchange rate is below one,the same basket of goods is ________ in the United States than in Japan,and the purchasing power of the U.S. dollars is ________ than the Japanese yens.

• A)more expensive;higher
• B)cheaper;lower
• C)more expensive;lower
• D)cheaper;higher

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