Finance Assignment | Top Essay Writing

1. What does a real exchange rate greater than one indicate, if the real exchange rates are measured as domestic inflation divided by foreign inflation proofed for nominal exchange rates?

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a) that the competitiveness of domestic multinationals has improved or

b) that the relative purchasing power of domestic consumers has declined or,

c) that the competitiveness of domestic multinationals has declined or,

d) that the relative purchasing power of domestic consumers is unchanged. Get Finance homework help today