Suppose the Real Exchange Rate Is 4/5 Pounds of Chilean

Multiple Choice

Suppose the real exchange rate is 4/5 pounds of Chilean beef per pound of U.S.beef,a pound of U.S.beef costs $2 and the nominal exchange rate is 600 Chilean pesos per dollar.It follows that Chilean beef costs

A) 960 pesos per pound.
B) 1,200 pesos per pound.
C) 1,500 pesos per pound.
D) None of the above is correct.