If the price level in the U.S. is 120, the price level in South Africa is 140, and the nominal exchange rate is 7 South African rands per dollar, then the real exchange rate is
A) 6 South African goods per U.S. good.
B) 1.4 South African goods per U.S. good.
C) 9.8 South African goods per U.S. good.
D) 8.4 South African goods per U.S. good.
Correct Answer:
Verified
Q39: Suppose the exchange rate of the U.S.
Q40: Which of the following examples definitely illustrates
Q41: Q42: When people who are holding the money Q43: Suppose the exchange rate between the U.S. Q44: The real exchange rate is the Q47: Given the U.S. price level P, the Q48: The average exchange rate of the U.S. Q49: Suppose that a dollar buys 120 yen. Q50: The nominal exchange rate is
A) trade-
A) a measure
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