The Real Exchange Rate Between the U

question 357

Multiple Choice

The real exchange rate between the U.S. dollar and the Indian rupee is the:

• A) exchange rate between the dollar and the rupee.
• B) exchange rate between the dollar and the rupee divided by the price level in India.
• C) amount of Indian rupees per dollar multiplied by the relative price levels in the United States and India.
• D) official exchange rate between the dollar and the rupee quoted by the banks in the United States and India.