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.

Question

Quizplus · Accepted Answer

The Answer is A

The Domestic Currency Price of a Representative Domestic Expenditure Basket