The real exchange rate: Group of answer choices measures how many Japanese yen one really gets for a U. S. dollar. is the price of a domestic car divided by the price of a foreign car. is equal to the nominal exchange rate multiplied by the domestic price level divided by the foreign price level. is equal to the nominal exchange rate multiplied by the foreign price level divided by the domestic price level.

Brian has just finished college. he wants to set up a small business to make and sell fireworks. he registers his company and acquires a license from the government. he finds that most of his competitors are selling fireworks at an extremely low price. he would like to make more money, so he decides to innovate and develop better fireworks. he sells his fireworks at a higher price, and they are a huge hit with the customers. after a few years, he earns enough profit to set up a bigger fireworks factory that complies with the government’s health and safety regulations. he even starts exporting fireworks overseas. which type of economy does this scenario describe?