The Real Exchange Rate Approach to Exchange Rates (cont.)
{"Image DocumentName": "The Real Exchange Rate Approach to Exchange Rates (cont.)", "Image ImageDescription": "According to PPP, exchange rates are determined by relative average prices: E /\u20ac = PUS/PEU. According to the more general real exchange rate approach, exchange rates may also be influenced by the real exchange rate: E /\u20ac = qUS/EU x PUS/PEU. qUS/EU = (E /\u20ac x PEU)/PUS => E /\u20ac = E /\u20ac What influences the real exchange rate?", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}