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If the Real Exchange Rate of the U

Question 10

Multiple Choice

If the real exchange rate of the U.S. dollar in terms of the euro increases to 1.2, this means that:


A) fewer chocolate croissants can be purchased for $10 in Paris than in New York.
B) more chocolate croissants can be purchased for $10 in Paris than in New York.
C) exactly 1.2 more chocolate croissants can be purchased in New York than in Paris.
D) the price of a chocolate croissant is $1.20 in Paris and $1.00 in New York.

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