The Domestic Currency Price of a Representative Domestic Expenditure Basket

question 74

Multiple Choice

The domestic currency price of a representative domestic expenditure basket is

• A) P, the domestic price level.
• B) E, the nominal exchange rate.
• C) P times E, the domestic price level times the domestic price level.
• D) P , the foreign price level.
• E) P times E, the foreign price level times the nominal exchange rate.

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