If it took as many dollars to buy goods in the United States as it did to buy enough Romanian currency to buy the same goods in Romania,the real exchange rate would be computed as how many Romanian goods per U.S.goods?

Question

Quizplus · Accepted Answer

The real exchange rate being one implies that the purchasing power parity holds, meaning the same amount of money can buy the same quantity of goods in both countries.

If It Took as Many Dollars to Buy Goods in the United