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OpenStudy (anonymous):
What is the relationship between the real exchange rate and the nominal exchange rate? The two are identical. The real exchange rate equals the nominal exchange rate less the domestic inflation rate. The real exchange rate equals the nominal exchange rate divided by the domestic inflation rate. The real exchange rate equals the nominal exchange rated times the ratio of the domestic price level to the foreign price level.
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OpenStudy (anonymous):
I did some reading, sounds like last one
OpenStudy (anonymous):
alright im going to trust you on it
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