The answer to the question of whether or not a U.S. dollar will buy more in the U.S. or in a foreign country is determined by:

A. whether the nominal exchange rate is > or < than 1.
B. you cannot determine the answer until you travel to the foreign country and convert U.S. dollars to the foreign currency.
C. the real exchange rate.
D. the nominal exchange rate.


Answer: C

Economics

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