The nominal exchange rate is 2 Barbados dollars per U.S. dollar. If the price of a good in Barbados is 3 Barbados dollars and the price in the U.S. is 2 U.S. dollars, what is the real exchange rate to the nearest 100th?
a. 3 Barbados goods per U.S. good
b. 1.33 Barbados goods per U.S. good
c. .75 Barbados goods per U.S. good
d. none of the above is correct
b
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