The Answer to the Question of Whether or Not a U.S.dollar

question 11

Multiple Choice

The answer to the question of whether or not a U.S.dollar will buy more in the U.S.or in a foreign country is determined by:

• A)The nominal exchange rate
• B)The real exchange rate
• C)Whether the nominal exchange rate is > or < than 1
• D)You cannot determine the answer until you travel to the foreign country and convert $ to the foreign currency

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Definitions:

Losing Value

A decrease in the worth or market value of an asset over time.

Dollar Bill

A paper currency of the United States valued at one hundred cents.