The nominal exchange rate is
A) the value of the U.S. dollar expressed in units of foreign currency per U.S. dollar.
B) the real exchange rate multiplied by the ratio of the U.S. price level to the foreign price level.
C) the relative price of U.S. produced goods to foreign produced goods.
D) a measure of the quantity of the nominal GDP of other countries per unit of U.S. nominal GDP.

Question

Quizplus · Accepted Answer

The nominal exchange rate is defined as the value of one country's currency in terms of another country's currency, typically expressed as the amount of foreign currency one can get for a unit of domestic currency or vice versa. This is what choice A describes.

The Nominal Exchange Rate Is