Asked by
Tammie Ritch
on Nov 16, 2024
Verified
If the U.S. real exchange rate with Japan is greater than 1, then U.S. goods are relatively cheap.
Real Exchange Rate
The nominal exchange rate adjusted for differences in price levels between two countries, showing how many units of a foreign product can be purchased with one unit of a domestic product.
- Understand the concept of real and nominal exchange rates.
Verified Answer
BZ
Learning Objectives
- Understand the concept of real and nominal exchange rates.