If It Took as Many Dollars to Buy Goods in Canada

Multiple Choice

If it took as many dollars to buy goods in Canada as it did to buy enough currency to buy the same goods in India, the real exchange rate would be computed as how many Indian goods per Canadian goods?

A) one
B) the number of dollars needed to buy Canadian goods divided by the number of rupees needed to buy Indian goods
C) the number of rupees needed to buy Indian goods divided by the number of dollars needed to buy Canadian goods
D) a number equal to the nominal exchange rate