Multiple Choice
Suppose that Australia's price level is 200, the British price level is 100, and the nominal exchange rate of pounds to the dollar is £0.40 = $1, then the real exchange rate of pounds to the dollar is:
A) 1.60.
B) 0.80.
C) 0.50.
D) 020.
Correct Answer:
Verified
Correct Answer:
Verified
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