The Real Exchange Rate Equals The

question 16

Multiple Choice

The real exchange rate equals the:

• A) nominal exchange rate divided by the ratio of the price levels of two countries.
• B) nominal exchange rate multiplied by the ratio of the price levels of the two countries.
• C) sum of the ratio of the price levels of the two countries.
• D) nominal exchange rate minus the ratio of the price levels of the two countries.

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