Economics 9708 · AS & A Level · 6.4

6.4 — practice question

What does the term real exchange rate mean?

  • Athe exchange rate at which foreign currency traders can buy a country’s currency
  • Bthe exchange rate between a country’s currency and the US Dollar
  • Cthe exchange rate with international differences in price inflation removed
  • Dthe weighted average of a country’s exchange rates with its major trading partners

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