If e is the real exchange rate, e' is the nominal exchange rate, P is the domestic price level, and Pf is the foreign price level, then
A) e' ( = e(P/Pf) .
B) e = e' (P/Pf) .
C) e = e' (Pf/P) .
D) e = Pf/e' (P.
Correct Answer:
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