Assume the U.K. government announces it is always willing to purchase gold at a price of £20 per ounce and the U.S. government announces the same at a price of $40 per ounce. The exchange rate will then be
A) $20/£
B) $2.00/£
C) £1.00/$
D) £40/$
E) $4.00/£
Correct Answer:
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