The average price of a country's goods and services relative to the average price of the same goods and services in another country when expressed in a common currency is known as the:

Question

Quizplus · Accepted Answer

The real exchange rate compares the price of goods and services between two countries, taking into account the exchange rate and inflation, to show how much of one country's currency is needed to purchase the same goods and services in another country.

The Average Price of a Country's Goods and Services Relative