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Question 25 There is a nominal exchange rate and a real exchange rate. How do we get to the real exchange rate for America from
Question 25 There is a nominal exchange rate and a real exchange rate. How do we get to the real exchange rate for America from the nominal exchange rate (assume that it is just 2 countries, America and the UK) the real exchange rate equals the American price deflator divided by the ratio of the American nominal exchange rate to the UK nominal exchange rate (B) the real exchange rate equals the nominal exchange rate divided by the ratio of the American price deflator to the UK price deflator the real exchange rate equals the nominal exchange rate divided by the ratio of American GDP to the UK GDP D the real exchange rate equals the nominal exchange rate times the ratio of the American price deflator to the UK price deflator
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