If the nominal exchange rate e is foreign currency per dollar, the domestic price is P, and the foreign price is P*, then the real exchange rate is defined as
A)(eP*)/P.
B)(eP)/P*.
C)e + P*/P.
D)e − P/P*.

Question

Quizplus · Accepted Answer

The Answer of If the nominal exchange rate e is foreign currency per dollar, the domestic price is P, and the foreign price is P*, then the real exchange rate is defined as
A)(eP*)/P.
B)(eP)/P*.
C)e + P*/P.
D)e − P/P*.

If the Nominal Exchange Rate E Is Foreign Currency Per