The Relative Price of Goods in Two Countries Is Known

question 4

Multiple Choice

The relative price of goods in two countries is known as the ________.

• A)nominal exchange rate
• B)real exchange rate
• C)domestic price level
• D)real interest rate

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Definitions:

Easier Credit

Conditions under which banks make more loans available to customers with lower interest rates and less stringent qualification criteria.

Net Period

The timeframe between the issuance of an invoice and the due date for payment, often referred to in terms of net 30, net 60, etc.

Prompt Payment Discount

A discount offered to customers for paying their invoices early, serving as an incentive for quicker payment.

Credit Bureaus

Organizations that collect and maintain individual credit information, supplying it to creditors to help them decide whether to lend money.