Suppose that a laptop computer costs 840 British pounds in the United Kingdom and $1,400 in the United States. If the nominal exchange rate is 0.6 pounds per U.S. dollar, then the real exchange rate is:
A) 1 British laptop computer per U.S. laptop computer.
B) 3/5 British laptop computer per U.S. laptop computer.
C) 5/3 British laptop computer per U.S. laptop computer.
D) none of the above
Correct Answer:
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