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09-09-2019
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Good that cost one half dollar in the U.S. cost one euro in Germany, the real exchange rate would be computed as how many German goods per U.S. goods?

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phpastorino phpastorino

13-09-2019

Answer:

Real Exchange Rate computed as German goods per U.S. goods: 2

Explanation:

Cost in the US: 0.50 dollar

Cost in Germany: 1 euro

Real Exchange Rate: German Goods / U.S. Goods

Real Exchange Rate: 1 / 0.50 = 2

The real exchange rate measures the price of foreign goods relative to the price of domestic goods.

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