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If We Let P = the Domestic Price of a Basket

Question 16

Multiple Choice

If we let P = the domestic price of a basket of goods and Pf the foreign price of the same basket of goods, and = the nominal exchange rate of U.S.$/foreign currency the real exchange rate is best expressed as:


A) If we let P = the domestic price of a basket of goods and P<sub>f</sub> the foreign price of the same basket of goods, and = the nominal exchange rate of U.S.$/foreign currency the real exchange rate is best expressed as: A) B) C) D)
B) If we let P = the domestic price of a basket of goods and P<sub>f</sub> the foreign price of the same basket of goods, and = the nominal exchange rate of U.S.$/foreign currency the real exchange rate is best expressed as: A) B) C) D)
C) If we let P = the domestic price of a basket of goods and P<sub>f</sub> the foreign price of the same basket of goods, and = the nominal exchange rate of U.S.$/foreign currency the real exchange rate is best expressed as: A) B) C) D)
D) If we let P = the domestic price of a basket of goods and P<sub>f</sub> the foreign price of the same basket of goods, and = the nominal exchange rate of U.S.$/foreign currency the real exchange rate is best expressed as: A) B) C) D)

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