Question: The real exchange rate is defined as: Question 16 options: the difference between the domestic and foreign inflation rate the ratio of the foreign price

The real exchange rate is defined as: Question 16 options: the difference between the domestic and foreign inflation rate the ratio of the foreign price level to the domestic price level the amount of foreign currency you can buy with one unit of domestic currency the ratio of the foreign price level measured in the domestic currency to the domestic price level

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