In the U.S.a digital camera costs $150.The same camera in London sells for 60 pounds.If the exchange rate is .50 pounds per dollar,then which of the following is correct?
A) The real exchange rate is greater than 1.A person in London with $150 could exchange them for pounds and have more than enough to buy the camera there.
B) The real exchange rate is greater than 1.A person in London with $150 could exchange them for pounds but then wouldn't have enough to buy the camera there.
C) The real exchange rate is less than 1.A person in London with $150 could exchange them for pounds and have more than enough to buy the camera there.
D) The real exchange rate is less than 1.A person in London with $150 could exchange them for pounds but then wouldn't have enough to buy the camera.
Correct Answer:
Verified
Q31: The nominal exchange rate is .80 euros
Q34: The exchange rate is 1.5 Bosnian markas
Q63: If the U.S.real exchange rate appreciates,U.S.exports to
Q71: If the U.S.has a trade deficit and
Q167: If the nominal exchange rate e is
Q240: The real exchange rate is the nominal
Q256: In Ireland,a pint of beer costs 2.2
Q259: The nominal exchange rate is 4 Saudi
Q260: If the exchange rate is 5 units
Q263: Suppose that the nominal exchange rate is
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