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An Exchange Rate

Question 4

Multiple Choice

An exchange rate:


A) is the ratio of the dollar volume of a nation's exports to the dollar volume of its imports
B) measures the interest rate ratios of any two nations
C) is the amount that one nation must export to obtain $1 worth of imports
D) is the price at which the currencies of any two nations exchange for one another
E) is the ratio of the price level in one country and the GDP level in another

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