suppose the real exchange rate between russia and the united states is defined in terms of bottles of russian vodka per bottle of u.s. vodka. which of the following will increase the real exchange rate (that is, increase the number of bottles of russian vodka per bottle of u.s. vodka)? a. a decrease in the ruble price of russian vodka b. an increase in the dollar price of u.s. vodka c. an increase in the number of rubles for which the dollar can be exchanged d. all of the above will increase the real exchange rate. e. none of the above will increase the real exchange rate.

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10-11-2022
Business

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suppose the real exchange rate between russia and the united states is defined in terms of bottles of russian vodka per bottle of u.s. vodka. which of the following will increase the real exchange rate (that is, increase the number of bottles of russian vodka per bottle of u.s. vodka)? a. a decrease in the ruble price of russian vodka b. an increase in the dollar price of u.s. vodka c. an increase in the number of rubles for which the dollar can be exchanged d. all of the above will increase the real exchange rate. e. none of the above will increase the real exchange rate.

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SakshTiwari353 SakshTiwari353 · Answer 1 · 2022-11-15T13:10:54+01:00

The following will increase the real exchange rate (that is, increase the number of bottles of Russian vodka per bottle of U.S. vodka) All of these answers will increase the real exchange-rate.

How accurate is this currency rate quiz?

The real exchange rate, which is calculated by multiplying the nominal exchange rate by the proportion of price levels, gauges the relative purchasing power of the various currencies. The relative purchasing power of the native currency is said to be diminished when the real exchange rate (Rd/f) increases.

What in economics is a real exchange rate?

In contrast, the real exchange rate R is described as the proportion between domestic and foreign prices, where domestic prices are determined by the nominal exchange rate that is in effect at the time.

To Know more about exchange-rate.

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