4. The nominal exchange rate is the rate at which people trade the currency of one country...
Question:
4. The nominal exchange rate is the rate at which people trade the currency of one country for the currency of another country.The real exchange rate is the rate at which people trade the goods produced by the two countries.The real exchange rate equals the nominal exchange rate multiplied by the ratio of the price levels in the two countries.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: