In the market for foreign-currency exchange, E₁ is:
A)the price of goods and services in the present relative to goods and services in the future
B)the price of goods and services in the future relative to goods and services in the present
C)the price of foreign goods and services relative to domestic goods and services
D)the price of domestic goods and services relative to foreign goods and services

Question

Quizplus · Accepted Answer

E₁ represents the exchange rate, which is the price of domestic goods and services relative to foreign goods and services in the market for foreign-currency exchange.

In the Market for Foreign-Currency Exchange, E₁ Is