The Percentage Change in the Real Exchange Rate Between Two

question 79

Multiple Choice

The percentage change in the real exchange rate between two nations is equal to the:

• A) product of home worker productivity and foreign productivity divided by the share of traded goods in production.
• B) difference between home and foreign worker productivity.
• C) difference in the relative wage of foreign and home workers times the price level in the nation.
• D) change in the difference between foreign worker productivity and home worker productivity multiplied by the share of nontraded goods in total production.

---

Definitions:

Employee's Salary

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

Control Charts

A statistical tool used in quality control processes to monitor, control, and improve process performance by detecting process variations.

Common Causes

Variations in a process that are random and inherent as a natural part of the process.

Special Causes

Unusual sources of variation in a process that are not part of the process as it was designed and generally need to be identified and eliminated.