The nominal exchange rate is .80 euros per dollar and the real exchange rate is 4/3.Which of the following prices for a particular good are consistent with these exchange rates?
A)$4 in the U.S.and 3 euros in Italy.
B)$4 in the U.S.and 3.75 euros in Italy.
C)$5 in the U.S.and 3 euros in Italy.
D)$6 in the U.S.and 2.50 euros in Italy.

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The Answer of The nominal exchange rate is .80 euros per dollar and the real exchange rate is 4/3.Which of the following prices for a particular good are consistent with these exchange rates?
A)$4 in the U.S.and 3 euros in Italy.
B)$4 in the U.S.and 3.75 euros in Italy.
C)$5 in the U.S.and 3 euros in Italy.
D)$6 in the U.S.and 2.50 euros in Italy.

The Nominal Exchange Rate Is