If We Let P = the Domestic Price of a Basket

If we let P = the domestic price of a basket of goods and P_f = the foreign price of the same basket of goods:

A) If $\frac { P } { P _ { f } }$ > 1 foreign products will seem inexpensive
B) If $P$

$P_{f}$ > 1 foreign products will seem expensive
C) If $\frac { P } { P _ { f } }$ = 1 the nominal exchange rate is also = 1
D) You cannot determine the relative prices of foreign goods from the equation $\frac { P } { P _ { f } }$