NO.PZ2018062003000200
问题如下:
When the real exchange rate( assuming domestic currency is price currency and foreign currency is base currency) increased, which of the followings is most likely to be associated with an decrease?
选项:
A.Nominal exchange rate.
B.Domestic price level.
C.Foreign price level.
解释:
B is correct.
The formula of real exchange rate is :
Real exchange rate
An decrease in the domestic price level increases the real exchange rate because it implies an decrease in the purchasing power of the domestic currency compared to foreign currency.
考点: exchange rate
解析: Real exchange rate
根据上述公式,较高的Nominal exchange rate,较高的Foreign price level,以及较低的Domestic price level会产生较高的Real exchange rate
这道题应该是用这张图的公式。我是不是可以认为,Domestic price level就是CPI(D)?