The real exchange rate between the U.S. dollar and the Indian rupee is the:
A) exchange rate between the dollar and the rupee.
B) exchange rate between the dollar and the rupee divided by the price level in India.
C) amount of Indian rupees per dollar multiplied by the relative price levels in the United States and India.
D) official exchange rate between the dollar and the rupee quoted by the banks in the United States and India.
Correct Answer:
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