The exchange rate is
a. the rate at which goods will exchange for each other in the international market
b. the number of units of one currency required in exchange for one unit of another currency
c. the number of units of one currency required in exchange for one unit of another countries' good
d. established by the ratio of the values of currency to goods
e. set by each individual country, which is why we have deficits and surpluses on current account
B
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A) elastic; inelastic B) elastic; elastic C) inelastic; inelastic D) inelastic; elastic
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What will be an ideal response?