The difference between the nominal and real exchange rates is that:
A) nominal rates are temporary,while real rates are permanent.
B) the real exchange rate is the actual rate used by traders.
C) the real rate takes relative purchasing power into account,while the nominal rate doesn't.
D) the nominal rate is approximate,while the real rate is precise.
Correct Answer:
Verified
Q25: The Big Mac index is an attempt
Q52: If the domestic price level equals the
Q67: If 1 euro can buy $1.35:
A) $1
Q68: The real exchange rate equals the:
A) nominal
Q69: If the exchange rate is US$1.28/euro,it takes
Q70: Which factor may adversely affect the ability
Q76: A car sells for $20,000 in the
Q82: If 1 euro will buy $1.30:
A) $1
Q144: If 1 dinar will buy 25 cents,
Q152: _ occurs when the value of a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents