Essay
In the U.S. a television costs $400. In South Africa the same television costs 3000 rand (the currency of South Africa). The nominal exchange rate is 8 rand per dollar.
A. Find the real exchange rate. Show your work.
B. In terms of dollars where is the television cheapest?
Correct Answer:
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The real exchange rate = 8 x 4...View Answer
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Correct Answer:
Verified
View Answer
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