The price of ________ in terms of ________ is referred to as the real exchange rate.
A)foreign goods; foreign services
B)domestic goods; the domestic currency
C)domestic goods; domestic services
D)domestic goods; foreign goods

Question

Quizplus · Accepted Answer

The real exchange rate is the price of domestic goods in terms of foreign goods. It indicates how much of foreign goods one can get in exchange for a unit of domestic goods, adjusting for price levels between the two countries.

The Price of ________ in Terms of ________ Is Referred

The Price of in Terms of Is Referred