If the cost of a typical basket of goods in the U.S. is $100 and in Mexico it is 800 pesos, and the nominal exchange rate is 25 pesos per dollar, what is the real exchange rate?
A) 0.33.
B) 1.33.
C) 1.50.
D) 3.13.

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The Answer of If the cost of a typical basket of goods in the U.S. is $100 and in Mexico it is 800 pesos, and the nominal exchange rate is 25 pesos per dollar, what is the real exchange rate?
A) 0.33.
B) 1.33.
C) 1.50.
D) 3.13.

If the Cost of a Typical Basket of Goods in the U.S