When we look at exchange rates btwn two countries, what is the relationship between the exchange rate expressed in units of the domestic currency and the exchange rate expressed in units of the foreign currency?
a. They are both equal to one.
b. They cancel each other out.
c. One is always the reciprocal of the other.
d. They can never coexist.
Ans: c. One is always the reciprocal of the other.
Economics
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