A good in the U.S. costs $20 . The same good costs 150 pesos in Mexico. If the nominal exchange rate is 10 pesos per dollar, what is the real exchange rate?
a. 4/3 so the good is more expensive in the U.S.
b. 4/3 so the good is more expensive in Mexico
c. 3/4 so the good is more expensive in the U.S.
d. 3/4 so the good is more expensive in Mexico
a
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Give two examples of products sold in perfectly competitive markets and two examples of products sold in monopolistically competitive markets.
The change in the quantity of goods and services that an hour's work can buy is measured by the
A) nominal wage. B) real wage. C) CPI. D) real interest rate. E) inflation rate.
The functions carried out by the Federal Reserve Banks include
a. supervising member banks in their districts. b. serving as fiscal agents for the federal government. c. supplying money in the form of Federal Reserve notes. d. All of these.
You decide to skip going to a movie with friends and stay home and study. How did you reach your decision?
a. By determining that you were not interested in the movie b. By evaluating that the marginal cost of studying exceeded the marginal benefit c. By determining that the marginal benefit of studying was greater than the marginal cost d. By realizing that there was a very high opportunity cost associated with studying