The real exchange rate between the Canadian dollar and the Indian rupee is the:
A) exchange rate between the dollar and the rupee.
B) exchange rate between the dollar and the rupee divided by the price level in India.
C) amount of Indian rupees per dollar multiplied by the relative price levels in Canada and India.
D) official exchange rate between the dollar and the rupee quoted by the banks in Canada and India.
Correct Answer:
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