If the real exchange rate is less than 1,then the A)nominal exchange rate x U.S.price foreign price.The dollars required to purchase a good in the U.S.would buy more than enough foreign currency to buy the same good overseas. B)nominal exchange rate x U.S.price foreign price.The dollars required to purchase a good in the U.S.would not buy enough foreign currency to buy the same good overseas. C)nominal exchange rate x U.S.price

Question

If the real exchange rate is less than 1,then the A)nominal exchange rate x U.S.price > foreign price.The dollars required to purchase a good in the U.S.would buy more than enough foreign currency to buy the same good overseas. B)nominal exchange rate x U.S.price > foreign price.The dollars required to purchase a good in the U.S.would not buy enough foreign currency to buy the same good overseas. C)nominal exchange rate x U.S.price < foreign price.The dollars required to purchase a good in the U.S.would buy more than enough foreign currency to buy the same good overseas. D)nominal exchange rate x U.S.price < foreign price.The dollars required to purchase a good in the U.S.would not buy enough foreign currency to buy the same good overseas.

Quizplus · Accepted Answer

The Answer of If the real exchange rate is less than 1,then the A)nominal exchange rate x U.S.price > foreign price.The dollars required to purchase a good in the U.S.would buy more than enough foreign currency to buy the same good overseas. B)nominal exchange rate x U.S.price > foreign price.The dollars required to purchase a good in the U.S.would not buy enough foreign currency to buy the same good overseas. C)nominal exchange rate x U.S.price < foreign price.The dollars required to purchase a good in the U.S.would buy more than enough foreign currency to buy the same good overseas. D)nominal exchange rate x U.S.price < foreign price.The dollars required to purchase a good in the U.S.would not buy enough foreign currency to buy the same good overseas.

If the Real Exchange Rate Is Less Than 1,then the