The Domestic Currency Price of a Representative Foreign Expenditure Basket

question 109

Multiple Choice

The domestic currency price of a representative foreign 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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Definitions:

Veins

Blood vessels that carry blood towards the heart from various parts of the body.

Hemocoel

A primary body cavity of most invertebrates, containing circulatory fluid instead of blood and distinguished by the lack of a true coelom.

Hemolymph

The fluid equivalent to blood found in most invertebrates, which occupies the interior cavity of the body and directly bathes the internal organs.

Open Circulatory System

A type of circulatory system in which the circulating fluid (hemolymph) is not entirely contained within blood vessels but bathes the internal organs directly in an open body cavity (hemocoel).