Suppose the Real Exchange Rate Is 1 Litre of Canadian

Multiple Choice

Suppose the real exchange rate is 1 litre of Canadian gasoline per 2 litres of U.S.gasoline,1 litre of U.S.gasoline costs $0.45 U.S.,and a litre of Canadian gas costs $1.30 Canadian.What is the nominal exchange rate?

A) 0.38 U.S.dollars per Canadian dollar
B) 0.45 U.S.dollars per Canadian dollar
C) 0.69 U.S.dollars per Canadian dollar
D) 1.30 U.S.dollars per Canadian dollar