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If the price of a good in the U.S. is $10 and the unit of foreign currency is the stone, in which case is the real exchange rate 4/5?
World Price
The global market price of a commodity, determined by international supply and demand.
Domestic Price
The price of goods or services within a country's borders, which can be influenced by local supply and demand factors.
Domestic Supply
The total amount of goods and services produced within a country's borders that are available for consumption or export.
Domestic Demand
The total demand for goods and services within a country's borders.
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