If the exchange rate is $1.50 per euro, the U.S. price level is 180, and the eurozone price level is 120, then the real exchange rate per euro is:

Name: If the exchange rate is $1.50 per euro, the U.S. price level is 180, and the eurozone price level is 120, then the real exchange rate per euro is:
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Quizplus · Accepted Answer

The real exchange rate is calculated as (Nominal Exchange Rate * Price Level of Foreign Country) / Price Level of Home Country. Here, it's ($1.50 * 120) / 180 = $1.

If the Exchange Rate Is $1