Question

The real exchange rate measures the: Group of answer choices number of foreign goods one unit of domestic currency can buy amount of foreign currency one can get for one unit of domestic currency value of foreign currency denominated in domestic prices relationship between foreign and domestic interest rate number of foreign goods required to purchase a single unit of a domestic good

Answer 1

number of foreign goods required to purchase a single unit of a domestic good

Step-by-step explanation:

The real exchange rate is the rate which says that the rate at which the goods and services that are produced in the domestic country would be exchanged with the foreign goods and services

It could find out by applying the following formula

The Real exchange rate is

= Nominal exchange rate × (Foreign price ÷ Domestic price)

Hene, the last option is correct