Suppose a mobile phone cost $350 in Canada and $\times$2,500 in China.If the nominal exchange rate is $1 Canadian dollar is equal to $\times$7.75.
a)What is the value of the real exchange rate?
b)In which country is the mobile phone cheaper?

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The Answer of Suppose a mobile phone cost $350 in Canada and $\times$2,500 in China.If the nominal exchange rate is $1 Canadian dollar is equal to $\times$7.75.
a)What is the value of the real exchange rate?
b)In which country is the mobile phone cheaper?

Suppose a Mobile Phone Cost $350 in Canada And ×\times× 2,500 in China

Suppose a Mobile Phone Cost $350 in Canada And $\times$ 2,500 in China