Multiple Choice
If the price level in the UK is 8.0, the price level in Australia is 6.0, and it costs 0.65 pound to buy one Australian dollar, then the real exchange rate between Australia and the UK (the price of Australian goods in terms of British goods) is:
A) 1.49.
B) 0.49.
C) 1.19.
D) 0.79.
E) 0.29.
Correct Answer:
Verified
Correct Answer:
Verified
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