Multiple Choice
Use the information provided below to answer the following question(s) .
The exchange rate between the British pound and the U.S. dollar is 2. In England, the price level is 1.0 and the one-year interest rate is 20%. In the United States, the price level is .8 and the one-year interest rate is 8%. The inflation rate in both countries is zero.
-Refer to the information above.The price of U.S.goods measured in pounds is
A) .8.
B) 1.0.
C) 1.6.
D) 2.
E) none of the above
Correct Answer:

Verified
Correct Answer:
Verified
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