If a certain automotive part can be purchased in Mexico for 58 pesos or in Canada for $5.20 and if the nominal exchange rate is 11 pesos per Canadian dollar,then the real exchange rate for the automotive part is equal to
A) 1.30.
B) 49.23.
C) 0.125.
D) 0.99.
E) 8.
Correct Answer:
Verified
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A) market
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