4. The nominal exchange rate is the rate at which people trade the currency of one country...

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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.

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Macroeconomics

ISBN: 9780716752370

5th Edition

Authors: N. Gregory Mankiw

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