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krugman PPT c13 rev 
Definitions of Exchange Rates • Exchange rates are quoted as foreign currency per unit of domestic currency or domestic currency per unit of foreign currency. ♦How much can be exchanged for one dollar? ¥102$1 ♦How much can be exchanged for one yen? $0. 0098¥1 • Exchange rate allow us to express the cost or price of  more



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