Wednesday
April 16, 2014

Homework Help: econ-exchange rate

Posted by econ on Saturday, May 31, 2008 at 2:03pm.

E=exchange rate, H=Home, F=foreign

Usually exchange rate are expressed in units of home currency per units of foreign currency. (E H/F) But why for the real exchange rate, it is q F/H ?
This is really confusing.

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