The relative price of a country's goods and services in terms of foreign goods and services is the real exchange rate.

Question

Quizplus · Accepted Answer

This is correct. The real exchange rate is a ratio of prices between two countries' goods and services, which shows how much one country's goods and services can be exchanged for another country's goods and services. It helps to determine the competitiveness of a country's products in international markets.

The Relative Price of a Country's Goods and Services in Terms