Multiple Choice
A good in the U.S.costs $20.The same good costs 150 pesos in Mexico.If the nominal exchange rate is 10 pesos per dollar,what is the real exchange rate?
A) 4/3 so the good is more expensive in the U.S.
B) 4/3 so the good is more expensive in Mexico
C) 3/4 so the good is more expensive in the U.S.
D) 3/4 so the good is more expensive in Mexico
Correct Answer:

Verified
Correct Answer:
Verified
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