--%>

Real exchange rate

Question:

To determine the real exchange rate, what two pieces of information do you need in addition to the nominal exchange rate?

Answer:

The price levels of the concerned countries are needed in addition to nominal exchange rate to determine the real exchange rate.

 

   Related Questions in Business Economics

  • Q : Utilization of resources in production

    The points on a production possibilities curve communicate to combinations of goods which: (1) Can’t be generated with no technological advances. (2) Utilize all resources fully and efficiently in the production. (3) Can be generated, however use economic capaci

  • Q : Why producers not be able to find

    Why producers not be able to find enough paying buyers for “public goods”?

  • Q : Determine equilibrium prices market

    The new supply and demand curves within University City were S0 and D0, before the county commission imposed a $3 per six-pack excise tax upon beer. The new equilibrium quantities of six-packs sold per month and equilibrium prices, respectively,

  • Q : Illustrate how Microeconomics looks at

    Illustrate how Microeconomics looks at specific economic units?

  • Q : Effects of that depreciation or

    Would a decline in U.S. consumer income or a weakening of U.S. preferences for foreign products cause the dollar to depreciate or appreciate?  Other things equal, what would be the effects of that depreciation or appreciation on U.S. exports and imports?

  • Q : Laffer curve & Tax rate Question: Do

    Question: Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change? Using the 'human capital' investment model,

  • Q : What are the scientific method that

    What are the scientific method that Economists use to establish theories, laws, and principles?

  • Q : Illustration of Absolute and Relative

    The price of KnickKnacks is $1 and the price of WigWags has increased with $2 to $3. Therefore:  (w) absolute price of KnickKnacks has decreased and the relative price of WigWags has increased. (x) relative and absolute prices of KnickKnacks have

  • Q : Explain how women expanded production

    Explain how women expanded production possibilities?

  • Q : Describe the term-Only to be part with

    Describe the term: “Only to be part with it we want money”?