If the cost of a typical basket of goods in the U.S. is $100 and in Mexico it is 800 pesos, and the nominal exchange rate is 25 pesos per dollar, what is the real exchange rate?
A. 1.33.
B. 3.13.
C. 0.33.
D. 1.50.
Answer: B
Economics
You might also like to view...
An increase in the capital stock has the same effect on the production function as an increase in
a. labor. b. output. c. GDP. d. technology.
Economics
When housing prices rise, homeowners gain equity in their homes
Indicate whether the statement is true or false
Economics
If marginal cost is greater than average total cost, average total cost:
A. is falling. B. is rising. C. will not change. D. is minimized.
Economics
A firm that produces its own output is engaging in ________ integration, while a firm that markets its own good is engaging in ________ integration.
A. downstream; upstream B. backward; forward C. forward; backward D. vertical; horizontal
Economics