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- The difference between real and nominal exchange rates is as follows:
- Nominal exchange rate: Indicates how much one currency can be bought with one unit of another currency.
- Real exchange rate: Compares the general price level of certain commodities or baskets of commodities between two countries1234.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.A nominal exchange rate indicates how much one currency we can buy with one unit of another currency. In contrast, the real exchange rate compares the general price level of certain commodities or baskets of commodities of the two countries.efinancemanagement.com/international-financial-m…The nominal exchange rate describes the rate at which an individual can trade the currency of one country for the currency of another country. By contrast, the real exchange rate describes the rate at which an individual can trade the goods and services of one country for the goods and services of another country.quickonomics.com/nominal-and-real-exchange-rates/The nominal exchange rate simply states how much of one currency (i.e. money) can be traded for a unit of another currency. The real exchange rate, on the other hand, describes how many of a good or service in one country can be traded for one of that good or service in another country.www.thoughtco.com/overview-of-real-exchange-rat…While the nominal exchange rate tells how much foreign currency can be exchanged for a unit of domestic currency, the real exchange rate tells how much the goods and services in the domestic country can be exchanged for the goods and services in a foreign country.www.sparknotes.com/economics/macro/trade/secti… - People also ask
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