_________ it is the relative price of fo

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

_________ it is the relative price of foreign goods in terms of domestic goods.

Options:

Nominal exchange rate

Purchasing Power Parity

Real exchange rate

Relative Exchange Rate

Correct Answer:

Real exchange rate

Explanation:

The correct answer is Option 3: Real exchange rate

Real exchange rate: It is the relative price of foreign goods in terms of domestic goods.