If the cost of a typical basket of goods in the U.S. is $100 and in France it is 400 euros, and the nominal exchange rate is 2 euro per dollar, what is the real exchange rate?

A. 2.0.
B. 1.5.
C. 1.0.
D. 0.5.


Answer: D

Economics

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a. True b. False Indicate whether the statement is true or false

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On-budget expenditures:

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