The Nominal Exchange Rate Is

question 33

Multiple Choice

The nominal exchange rate is

• A) the value of the U.S. dollar expressed in units of foreign currency per U.S. dollar.
• B) the real exchange rate multiplied by the ratio of the U.S. price level to the foreign price level.
• C) the relative price of U.S. produced goods to foreign produced goods.
• D) a measure of the quantity of the nominal GDP of other countries that we get per unit of U.S. nominal GDP.

---

Definitions:

Supply Schedule

A table that shows the relationship between the price of a good and the quantity of that good a supplier is willing to offer for sale at each price level.

Equilibrium Price

The market price at which the quantity of goods demanded equals the quantity supplied, bringing the market into balance.

Market

A system or place where buyers and sellers interact to trade goods, services, or assets.

Legally Purchase

Refers to buying goods or services in accordance with the law.