Order Homework Help from Pro Experts

# The Real Exchange Rate

Need help with your homework? Look no further! Our subject experts are ready to effortlessly handle your assignments, so you can finally say goodbye to stress and hello to top grades.

Click or drag files to this area to upload. You can upload up to 3 files.
Get a response in under 15 min

The value of real GDP of other countries in comparison to a unit of the buys of the real GDP of America is real rate of exchange. Hence it is the value which is reached on comparing the value of commodities and services of America against that of other countries. The formula which can be applied to find the real exchange rate is RER= (E X P)/P*

This equation can be better understood with an example. Taking the Indian rupee as the currency to compare with the American dollar, the equation stands as follows.  E is the value do the rupee per dollar, P is the price level of America, P* is the price level at India. The value which is attained after calculation will be real rate of exchange. Therefore if the calculations need to be further analyzed an example can be used like if a commodity is taken up in this context, for example if it is assumed that the exchange rate or E is 100 rupees per dollar, the price of software in America is \$150 so the P is \$150 and the P* is set out at 5000. After calculation one chip is equal to here iPods.

The short run

On a short term basis the change in nominal exchange rate brings about alterations in the value of real rate of exchange. Taking India and America as examples again there is no guarantees that a change in prices or price level occurs at each instance that exchange rate alter. Thus changes in real rate of exchange only impact on a short term basis, and are limited to change in import demands and quantity of exports which are supplied.

The long run

Situations undergo rapid change when times shift from the short to long run. Here the nominal exchange rate and the real rate of exchange are fixed simultaneously and a shift in the nominal value does not affect real rate of exchange. Demand and supply for products deter mine real rate of exchange. There is no alternative for this and only when there is a real fluctuation in the rate of demand and supply will the exchange rate change. Similarly based on this equation the relative price levels that help stipulate an exchange rate is determined.

As per the quantity theory of money as explained in chapter 8 there is a change in exchange rate on appreciation of money. The quantity theory uniformly applies to all countries therefore an increase in price levels in Ukraine lead to a rise in exchange rate in Ukraine, while an increase of price in China leads to rise of exchange rate in the nation-state. If the exchange rate is given then fluctuations of the quantity of money alter not just price levels but exchange rates too.  To understand this better one can go back to the example of India and America.

Suppose the value of the Indian rupee was raised from 100 to 200 would it change the equation of 3 iPods to software? The answer is no, because the real exchange value remains unaltered. Now provided that the two countries had the capacity to create goods which were identical, like for example if both India and America created software then the real rate of exchange would over a period of time become equal to 1. Even though these examples have been stated assuming that each country produces just one product, in reality there is an overlap.

However it does not change the fact that the real GDP of one country stands different from that of another country. Hence if the GDP is not similar in two countries than the real rate of exchange is also constantly under change and not equal to 1.  This means that rate changes over time. This again reinstates that the goods and services which are produced by different countries and the demand which they create are instrumental in determining real rate of exchange. Also the changes in this rate are undertaken as a result of fluctuation of the demands.

## Homework Blues?

Get expert help with homework for all subjects.

• NPlagiarism-free work
• NHonest Pricing
• NMoney-back guarantee

## Solved Sample Works

### Accounting Homework

Corporate Accounting Sample

### Biology Homework

Genetics Assignment Sample

## Homework Help FAQs

##### How do I submit my homework?
K
L

Getting homework help is very simple with us. Students can either send us the homework via email or they can upload it to our online form here. For a quicker response, You can also chat with us at WhatsApp and submit homework directly. You are sure to get a response from our side within 10 minutes.

##### How much will my homework cost?
K
L

The cost of paying someone to do your homework varies depending on the service and the type of assignment. We have listed our standard pricing plans for popularly used writing services. For other kind of assignments, You can get a free instant quote from us using our online form.

We also accept partial payment to start working on your assignment help. You can pay the remaining amount when your task gets completed. No pressure of up-front payment. No hidden order costs.

##### Can I receive help with my homework anytime?
K
L

Yes, you can receive help with your homework anytime with us. Our online homework help services are available 24/7, allowing you to receive assistance with your homework anytime, anywhere.

For urgent homework requests, reach out to us through our LiveChat or WhatsApp channels and one of our friendly support agents will assist you in finding the right expert for your online homework help request immediately. With our services, you can rely on 24/7 availability and meeting deadlines.

##### Are online homework websites budget-friendly for students like me?
K
L

Yes, Our Online Homework Help websites are an affordable solution for you as a student. Compared to traditional tutoring services, MyHomeworkHelp prices their homework help services honestly and within the budget of college students. This makes it easier for you to receive assistance with your homework without breaking the bank.

##### What is your plagiarism-free policy?
K
L

At myhomeworkhelp, we take plagiarism very seriously and ensure that all solutions provided by our tutors are original and authentic. Our tutors are trained to provide custom-made solutions, tailored specifically to meet the requirements of each student. We do not provide pre-written papers. All our homeswork solutions are made from scratch, guaranteeing 100% orignal homework answers.

Additionally, we have strict plagiarism-detection tools in place to check all submissions for authenticity.

##### Is using an Online Homework Help Service cheating?
K
L

Using online homework help services is not equivalent to cheating. Our services are intended to support students with their homework and provide them with the resources they need to succeed academically. With the help of our online homework help services, students can receive immediate assistance with their homework from any location, at any time.

At myhomeworkhelp, we are committed to promoting academic integrity. Our tutors provide solutions that serve as guides for drafting your own work. It is not acceptable to submit someone else's work as your own, as this constitutes academic plagiarism.

##### Can I chat with my tutor?
K
L

Using our secure chat board, you can now chat directly with your assigned tutor. The chats are encrypted both ways to secure your privacy. This makes your contact with the tutor directly & confidentially, so you can better explain any requirements or changes if needed or just need updates.

You can't contact the experts outside of chat board platform. Sharing any personal information, including but not limited to contact information, goes against our Terms and Conditions and therefore may result in permanently blocking you from the platform. We take any personal data very seriously and we do it for the safety of our users.

##### What is your money-back guarantee policy?
K
L

It’s worth noting that our online homework help service rarely leads to disappointment among students. Our expert tutors, along with our support and quality assurance team, are dedicated to providing the best possible experience for our customers. However, if for any reason a student is unsatisfied with their homework help solution, we offer unlimited revisions until they are fully satisfied.

In the rare event that a student remains unsatisfied even after revisions, we offer a money-back guarantee. We want all of our students to feel confident and secure when they turn to us for assistance with their homework, and this guarantee is just one way that we demonstrate our commitment to providing the best possible service. If you have any concerns about our services or the quality of the work you receive, please contact us for support.

##### What is the expertise of the tutor assigned to do my homework?
K
L

At myhomeworkhelp, we take pride in our team of qualified and experienced tutors. All of our tutors undergo a rigorous selection process and are required to have a minimum of a master's degree in their respective fields. Additionally, they must pass a series of tests to demonstrate their proficiency and ability to deliver quality work. We believe in transparency and providing our clients with the best possible service. You can be confident in the expertise of the tutor assigned to do your homework.

##### What about privacy & confidentiality?
K
L

Using My Homework Help is absolutely safe. We care about your security, therefore we encrypt all personal data to make every user feel safe while using our services and we don’t share any personal information with any third parties without your permission. Your credit card information is not stored anywhere at My Homework Help, and use of PayPal relies on their secure payment networks. Your identity, payment and homework are in safe hands. You can always be certain of getting professional help and remaining anonymous, while using My Homework Help.