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. 0.33.
B. 1.33.
C. 1.50.
D. 3.13.
D. 3.13.
Economics
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In computing GDP, it is essential to
A) avoid double counting. B) include government transfer payments. C) include government tax revenues. D) count all intermediate products directly as they are produced.
Economics
What is a normal profit? Is it part of the firm's opportunity costs, total revenue, or neither?
What will be an ideal response?
Economics
Which of the following macroeconomic variables is procyclical and leads the business cycle?
A) Business fixed investment B) Residential investment C) Nominal interest rates D) Unemployment
Economics
Explain how derivatives were used to increase risk making the financial crisis of 2007–2009 more severe.
What will be an ideal response?
Economics