Which exchange rate measures the average relative strength of a given currency with respect to other currencies without eliminating the effect of change in price?
A. Nominal exchange rate
B. Nominal effective exchange rate
C. Real exchange rate
D. Real effective exchange rate
Answer:B
Which exchange rate measures the average relative strength of a given currency with respect to other currencies without eliminating the effect of change in price?
A. Nominal exchange rate B. Nominal effective exchange rate C. Real exchange rate D. Real effective exchange rate