Suppose that a kilogram can of coffee costs about $6 in Canada. Suppose the exchange rate is about 0.7 euro per dollar and that a kilogram can of coffee in Belgium costs about 2.1 euros. What is the real exchange rate?
A) 2.45 cans of Belgian coffee per can of Canadian coffee
B) 3/4 cans of Belgian coffee per can of Canadian coffee
C) 3/5 cans of Belgian coffee per can of Canadian coffee
D) 2 cans of Belgian coffee per can of Canadian coffee
Correct Answer:
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