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What is the real exchange rate of usd in terms of euro

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If the nominal exchange rate of US dollar ($) to Euro (€) is 0.9 (1 USD = 0.9 Euro). Suppose one Subway sandwich is $6 in the US. The same sandwich is €4 in Europe. Using the Subway sandwich as our basket of goods, what is the real exchange rate of USD in terms of Euro.

Reference no: EM132422461

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