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A Country's Domestic Currency's Real Exchange Rate, Q, Is Best

Question 36

Multiple Choice

A country's domestic currency's real exchange rate, q, is best described by


A) the price of similar goods in the same market.
B) the price of the domestic basket in terms of the foreign one.
C) the price of a domestic basket.
D) the price of the foreign basket in terms of the domestic basket.
E) the price of different goods baskets in the same market.

Correct Answer:

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