The "real," or inflation-adjusted, exchange rate is
A)the balance of trade.
B)the budget deficit.
C)the purchasing power ratio.
D)unimportant to the U.S.economy.
E)None of the options

Question

Quizplus · Accepted Answer

The ratio of one country's purchasing power to another's is called the "real," or inflation-adjusted, exchange rate and is an important measure of the relative costs of domestic versus foreign goods.

The "Real," or Inflation-Adjusted, Exchange Rate Is