The price of gold is $300 per ounce in New York and 435 Canadian dollars per ounce in Toronto, Canada. If the law of one price holds for gold, the nominal exchange rate is ________ Canadian dollars per U.S. dollar.
A) 0.333
B) 0.690
C) 1
D) 1.45
Correct Answer:
Verified
Q36: The price of the average domestic good
Q37: The real exchange rate is the:
A)price of
Q38: Net exports will tend to be low
Q39: For a given domestic and foreign price
Q40: An increase in the real exchange rate
Q42: U.S. households wishing to purchase shares of
Q43: According to the theory of purchasing power
Q44: The PPP theory is most useful in
Q45: If a certain automotive part can be
Q46: Purchasing power parity is the theory that
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents