If e is the real exchange rate,is the nominal exchange rate ,P is the domestic price level,and Pf is the foreign price level,then

Question

If e is the real exchange rate,is the nominal exchange rate  ,P is the domestic price level,and Pf is the foreign price level,then

Quizplus · Accepted Answer

The real exchange rate is given by e = (Pf/P)*n where n is the nominal exchange rate. 
Therefore, we have e = (Pf/P)*11ea4cbb_47aa_c2c9_985e_1f94b33d8115_TB2645_11.

To solve for n, we rearrange the equation as n = e*(P/Pf). 
Substituting the given values, we get n = 11ea4cbb_47aa_c2c9_985e_1f94b33d8115_TB2645_11*(P/Pf).

Therefore, the nominal exchange rate is 11ea4cbb_47aa_c2c9_985e_1f94b33d8115_TB2645_11*(P/Pf).

Option B correctly represents this expression.

If E Is the Real Exchange Rate,is the Nominal Exchange