The Real Exchange Rate Is

question 416

Multiple Choice

The real exchange rate is

• A) the relative price of U.S. produced goods to foreign produced goods.
• B) the nominal exchange rate multiplied by the ratio of the foreign price level to the U.S. price level.
• C) the money price of foreign produced goods relative to the money price of U.S. produced goods.
• D) a measure of how much currency exchanges for a unit of another currency.