Table 31-2

-Refer to Table 31-2.In real terms,U.S.goods are less expensive than goods in which country(ies)?
A) Bolivia and Morocco
B) Japan,Norway,and Thailand
C) Japan and Norway
D) Thailand

Question

Table 31-2
 
-Refer to Table 31-2.In real terms,U.S.goods are less expensive than goods in which country(ies)?
A) Bolivia and Morocco 
B) Japan,Norway,and Thailand 
C) Japan and Norway 
D) Thailand

Quizplus · Accepted Answer

The table shows that the real effective exchange rate (REER) of the US dollar is below 100 for both Japan and Norway, indicating that US goods are relatively cheaper in those countries compared to the base year (2005). The REER for Bolivia, Morocco, and Thailand are all above 100, meaning that US goods are relatively more expensive in those countries. Therefore, the correct answer is C) Japan and Norway.

Table 31-2 -Refer to Table 31-2.In Real Terms,U.S.goods Are Less Expensive Than